Citi Now Sees a 100 Basis-Point Fed Rate Hike in July as Likely

Citigroup Inc. economists now see a 100 basis-point rate increase as the most likely outcome when the Federal Reserve meets in late July, following data that showed US consumer inflation accelerated to a fresh four-decade high.

“In June the committee showed it would react to each monthly inflation reading,” Citigroup economists led by Andrew Hollenhorst wrote in a note to clients Thursday. “We now expect the Fed to deliver a 100 basis-point rate hike at the meeting later this month.”