Fed tipped to hike rates early 2022

January 06, 2022 09:28
Photo: Reuters

The Federal Reserve is expected to hike rates by 25 basis points each in March and June this year, said Standard Chartered in a research report.

This is likely to be followed by a pause in the second half. “We expect supply constraints in durable goods to ease, inflation to fall and employment growth to be roughly at potential,” the report noted.

However, inflation is not expected to fall back to the target level. Meanwhile, employment-to-population ratio would stay below pre-Covid trend levels.

The bank expects two more 25 basis points hikes in 2023 and one in 2024.

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