Central Banks

Citi Sees Half-Point March Rate Hike on Hawkish Powell Remarks

Fed chair says FOMC likely to lift rates higher, more quickly
FOMC to meet March 21-22, January data hotter than expected

WATCH: “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” says Federal Reserve Chair Jerome Powell.Source: Bloomberg

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By Ana Monteiro

March 8, 2023 at 2:00 PM UTC

This article is for subscribers only.

Citigroup Inc. economists see the Federal Reserve raising its benchmark lending rate by 50 basis points at the March meeting, joining Goldman Sachs Group Inc. in lifting their forecast after Chair Jerome Powell’s hawkish comments on Capitol Hill Tuesday.

They increased the estimate from 25 basis points, and also lifted their forecast for peak rates to a range of 5.5% to 5.75%, they said in a note to clients Wednesday.