Fed could hike at every meeting this year, BofA says

The two biggest U.S. banks raised their forecasts of how quickly the Federal Reserve will raise interest rates this year, with Bank of America Corp. predicting a move at every meeting to tackle the highest inflation in four decades. “We now look for seven 25 basis point hikes this year and a peak funds rate of 2.75%-3.00%,” economists led by Ethan Harris wrote in a note Friday to clients. “This should affect the economy with a lag, weighing on 2023 growth.” JPMorgan Chase & Co. separately lifted its call to five hikes in 2022 from four previously. Chief U.S. Economist Michael Feroli said Fed Chair Jerome Powell’s remarks following Wednesday’s meeting “were clearly intended to dissuade the market from expecting a quarterly tempo of rate hikes.”
Source: The Bond Buyer