Skip to content

Inflation Data Likely Push Fed to Consider 75 Basis-Point Hike

  • A 75 basis-point move would be largest hike since 1994
  • Powell previously signaled a half-point hike was probable
Video player cover image
Fed Should Hike 100 Basis Points, Wharton's Siegel Says
Updated on

The latest jumps in consumer prices and inflation expectations will probably spur Federal Reserve officials to consider the biggest interest-rate increase since 1994 when they meet this week, after Chair Jerome Powell previously signaled a smaller move was the likely outcome.

US central bankers conclude a two-day meeting on Wednesday, with a decision due at 2 p.m. in Washington. Powell indicated at his post-meeting press conference in early May that the Fed would move forward with half-point rate hikes in June and July as long as economic data came in as expected. It was an unusually precise steer by the Fed chair.