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Analysts Suspect the Fed Will Bump Federal Funds Rate by 75 bps Next Week, Others Predict the ‘Biggest Hike in Decades’

Following the recent U.S. consumer price index report that indicated inflation in America has reached a 40-year high, many expect the Federal Reserve to hike the benchmark interest rate by 75 to 100 basis points (bps) on July 26. Blackstone’s Private Wealth Solutions expects the Fed to raise the rate by 75 bps and believes a three-quarter rate hike is in the cards as well.

“We don’t see this as a bear market,” Kaufman explained that year. “The difference is that we’re buying the ‘soft landing’ concept [for the economy], while others are not.”

Fresh forecasts also released with the June decision show projections for a 3.25-3.5 percent federal funds rate by the end of 2022, the highest since 2008.

What do you think the Fed will do during the next FOMC meeting? Do you expect a 75 bps or 100 bps increase next week? Let us know your thoughts about this subject in the comments section below.


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