FOMC Decision Preview: Biggest Rate Hike Since 1994 On Deck

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by Tyler Durden
Wednesday, Jun 15, 2022 - 03:35 PM

Submitted By Newsquawk

Up Until Monday afternoon, the FOMC was been expected to hike rates by 50bps to 1.25-1.50% until the hot May CPI figures, rising consumer inflation expectations and a WSJ article, ignited a wave of 75bps calls to 1.50-1.75%. The Fed guidance initially called for 50bps (both in June and July) had the data evolved as they expected, but after the hot May data, some calls for larger hikes, a 'Volcker moment', fuelled speculative market activity leading into the meeting, and given a slew of publications with high-placed sources (WSJ, CNBC, Bloomberg) have come out suggesting a 75bps hike - the biggest hike since 1994 - is indeed possible on the eve of the confab, it is now seen as a base case for many...

  • Barclays +75bps
  • Deutsche Bank +75bps
  • CapEcon +75bps
  • Goldman +75bps
  • JPMorgan +75bps
  • Jefferies +75bps
  • Nomura +75bps
  • SocGen +75bps
  • TD +75bps
  • Wells +75bps
  • BNP +50bps
  • BofA +50bps
  • Citi +50bps
  • Credit Suisse +50bps
  • HSBC +50bps
  • Morgan Stanley +50bps
  • StanChart +50bps