JPMorgan predicted that the Fed will raise interest rates by 25 basis points at each meeting.
JPMorgan economists said the Fed is likely to raise interest rates by 25 basis points over nine consecutive meetings to curb inflation.
Goldman Sachs, which previously stated that it expects five increases for 2022, also increased its forecast to seven.
“We expect the Fed to raise the policy rate by 25 basis points at each of the next nine meetings. ” the JPMorgan economics team led by Bruce Kasman said in a research note. Economists also touched upon the issue of inflation. They stated that “even if the current price pressures in the energy sector diminish, a cycle that feeds each other between strong growth, cost pressures, and private sector behavior can take root.”
Chicago Fed President Charles Evans, referring to the highest inflation in 40 years, said, “The current stance of monetary policy is wrongly based and requires significant adjustments.”
