How many times will the Fed raise rates in 2022?Take a look at Wall Street’s predictions

2022-05-06 0 By

With the Federal Reserve’s march rate hike a foregone conclusion, the only question is how far and how fast the Fed will move.Just recently, several Fed officials said the central bank would raise rates modestly.On Friday, for example, New York Fed President John Williams said the Fed should start raising interest rates in March to curb excessive inflation, but not too aggressively at first.”I don’t think there is a compelling argument for raising rates substantially initially,” Williams said.As such, Mr Williams sought to play down expectations of a 50 basis point rise in March.Mr Williams is also echoed by other Fed officials.Fed Governor Lael Brainard, for example, said she expected the Fed to start a rate hike cycle at its March meeting.Charles Evans, president of the Chicago Federal Reserve Bank, also said the Fed should adjust its low interest rate policy, but said it should not raise rates too quickly.It is worth mentioning that the latest data showed that in January, the US consumer price Index (CPI) rose 7.5 percent year on year, hitting a 40-year high.The U.S. Federal Reserve’s benchmark interest rate is currently in a range of 0 to 0.25%. As the Federal Reserve begins to tighten monetary policy, leading Wall Street investment banks are predicting that the Fed will raise rates by 150 to 175 basis points in 2022.Jpmorgan, for example, expects the Fed to raise interest rates seven times by 25 basis points each in 2022, for a total of 175 basis points for the year, compared with its previous forecast of five.Similarly, Goldman sachs echoed jpmorgan’s view that the Fed will raise rates seven times by 25 basis points this year, up from five, and 175 basis points in 2022.Separately, Bank of America expects the Fed to raise interest rates seven times by 25 basis points for a total of 175 basis points for the year, in line with its previous forecast, but says there is still a risk of a 50 basis point move in March.In contrast, Morgan Stanley, another Wall Street investment bank, predicts that the Fed will raise interest rates six times in 2022 by 25 basis points each, for a total of 150 basis points, compared with 125 basis points previously expected, as shown in the chart below:UBS also expects the Fed to raise interest rates six times, by 150 basis points, between March and November.Meanwhile, BNP Paribas also forecast that the Fed will raise interest rates six times in 2022, with a total of 150 basis points.However, Citigroup forecasts a 50 basis point rise in March, followed by four 25 basis point increases for 150 basis points over the course of the year.What do you think about that?How many times do you think the Fed will raise rates in 2022?Note: this article is compiled by wang Ye said finance, if you need to reprint please pay attention to the account in advance, private chat contact Wang Ye himself, after obtaining authorization to reprint, reprint please original reprint, shall not carry out any graphic transformation atlas, video and other forms of reprint, infringement will be prosecuted!In addition, the views in this article are personal views, only used for learning, exchange and discussion, do not constitute investment advice!If there are omissions, mistakes, welcome criticism and correction!Thank you for reading, please leave a comment, if you like our article, you can directly like it in the following ↓↓↓.