Powell’s ‘Different Expansion’ Spurs Faster Fed Hike Calls
- Nomura sees Fed raising rate by 50 basis points in March
- BNP Paribas predicts Fed will lift benchmark six times in 2022
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Federal Reserve Chair Jerome Powell’s argument that the U.S. faces a “different expansion” from when monetary policy was last tightened prompted some economists to predict the central bank will raise interest rates even faster than previously anticipated.
In reports published hours after Powell paved the way for the Fed to begin hiking rates in March, economists at Nomura Holdings Inc. said they now expected the central bank to lift its near zero benchmark by 50 basis points that month.