Traders Fully Price 75-Basis-Point Fed Hike at July Meeting
- Tightening bets are boosted ahead of key US inflation data
- Powell said both 50- and 75-basis point moves are on table
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Money markets are betting on a three-quarter percentage-point hike by Federal Reserve officials later this month, wagering the US will need to ramp up the pace of monetary tightening to tame inflation.
The repricing comes ahead of a key inflation report due Wednesday. The headline figure for June is set to accelerate to 8.8% year over year, the highest since 1981, according to the median estimate of analysts surveyed by Bloomberg.