Markets Bet on Sharpest Pace of Fed Tightening Since 1994
- Pricing now suggests 250 basis points of rate hikes in 2022
- Fed is to cap bond holding reduction at $95 billion a month
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Money-market traders are betting the Federal Reserve is heading for its most aggressive monetary-policy tightening in almost three decades as it fights a commodity-driven inflation spike.
They are pricing in a further 225 basis points of interest-rate hikes by the end of the year on top of the 25 basis points delivered in March.