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Fed Traders Now Fully Pricing In Seven Standard Hikes for 2022

  • Inflation concerns have increased amid Russia-Ukraine war
  • Investors look to Wednesday Fed decision for further clues
Updated on

Traders have boosted their expectations for the amount of Federal Reserve policy tightening that could occur this year, moving at one stage on Monday to fully price in seven standard quarter-point rate hikes.

The last time the market for overnight index swaps linked to Fed meeting dates fully priced that much tightening was on Feb. 11, the day after U.S. consumer-price inflation numbers for January came in hotter than expected, prompting investors to wager on more hawkish central bank policy.