Home Forex 75 bps for the third time, but probably not the last – Commerzbank

75 bps for the third time, but probably not the last – Commerzbank

by SuperiorInvest

The Federal Reserve raised rates by a triple 75 bps as expected. Another rate hike awaits us, economists from Commerzbank report.

Inflation is the priority

“The Fed made its third big rate move in a row, raising rates by 75bp to 3.00%-3.25%.”

“The central bank has held the prospect of another significant rate hike and is clearly prepared to accept a recession if necessary to combat high inflation.”

“Powell has made it very clear again that the Fed’s priority is to fight inflation. As a result, key rates are likely to rise much higher than most observers and the Fed itself had originally expected. These steps are likely to happen fairly quickly.”

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