Omar Slim of PineBridge Investments said the Fed may need to raise rates by 50 basis points in March.
Slim said the Fed is lagging behind in fighting inflation and may need to raise rates by 50 basis points in March. “The Fed’s long-standing rhetoric that inflation is temporary has weakened their credibility. A 50 basis point hike in March is on the table because they are behind the curve,” Slim said.
Recently, investors have discussed how fast the Fed will raise interest rates in response to rising inflation.
The Fed tightening is approaching speculation is also causing a rise in US bond yields.
Last week, Fed Vice Chairman Lael Brainard said that the Fed may raise rates by March to contain price pressures. San Francisco Fed President Mary Daly and Philadelphia Fed President Patrick Harker made similar statements.
Bill Ackman also argued that the Fed lost its fight against inflation and needed to raise interest rates more than expected in March to restore its credibility.
