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Economics

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
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Fed Should Hike 100 Basis Points, Wharton's Siegel Says
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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.