25 Mar 2022
Citigroup Predicts Half Point Interest Rate Hikes at Upcoming Four Fed Policy Meetings
The Index Today
Economists at Citigroup Inc. have issued an increased projection of interest rate hikes sanctioned by the U.S. Federal Reserve, contending that the central bank is poised to raise rates by 2.75 percentage point for this year, particularly at its upcoming four monetary policy meetings.
According to Bloomberg News, analysts also anticipate the Fed to continue raising the interest rates till 2023 which could propel the benchmark rate to a range between 3.5% and 3.75%. They said, “Risks to the terminal policy rate remain to the upside given the upside risk to inflation.”
This comes after Citigroup’s previous Fed forecast which expected the central bank to hike interest rates by 2 percentage points for 2022. However, policymakers expect the Fed to continue instituting quarter point rate increases at its each of the remaining six monetary policy meetings for the year.