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Economics

Fed Task Gets Tougher, Putting 75-Basis-Point Hike Back in View

  • Investors bet on 75 basis points but not seen likely next week
  • Powell faces press conference Wednesday, Congress June 22-23
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US Inflation Hits 40-Year High of 8.6%
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Bad news on inflation hardened expectations the Federal Reserve will keep raising interest rates in half-point steps through September, with talk of an even larger move mounting in the conversation.

Investors increased bets on a 75 basis point hike after data Friday showed consumer-price growth accelerating to a fresh 40-year high and a separate report in which expectations deteriorated, though Fed watchers generally doubt Chair Jerome Powell would take that step next week.