A three-quarter point rate increase would certainly show that the Fed is really worried about inflation. The last time the Fed hiked rates by 75 basis points was in the Alan Greenspan era: November 1994. Economists at Barclays think the Fed will announce a three-quarter-point hike Wednesday "to reinforce credibility and get ahead of inflationary pressures. The Jefferies economists added that even though "the Fed hates surprising the market ... the sharp increase in inflation expectations" is "an escape clause and gives Powell an out." JUST WATCHED Former NY Fed chief: Fed was 'very late' in addressing inflation Replay More Videos ... MUST WATCH Former NY Fed chief: Fed was 'very late' in addressing inflation 02:16"In light of recent developments, no one will criticize the Fed for hiking [three quarters of a percent]," the Jefferies economists added.

Source: CNN June 14, 2022 07:00 UTC