How Big Will the Fed Rate Hike Be? Wall Street's Top Minds Weigh In
The Federal Reserve's rate-setting committee kicks off its regularly scheduled two-day meeting on Tuesday, and it's all but certain to deliver yet another jumbo interest rate hike.
The great bulk of traders, investors, economists and strategists are forecasting a 75 basis point (bp) increase to the federal funds rate when Chair Jerome Powell and the rest of the Federal Open Market Committee (FOMC) wrap up their latest policy confab on Wednesday. (A basis point equals 0.01%, by the way.) The Fed will release its decision at 2:00 pm Eastern. However, as per usual, market participants are likely to be more keen on what Powell has to say at his post-proclamation press conference scheduled shortly thereafter.
The market has had plenty of time to digest another big rate hike, and it really should come as no surprise. Powell has never been one to mince words, for one thing. Besides, showed that a number of key components of the consumer price index continue to expand at alarming rates.
