Barclays Joins Others in Calling for Fed to Raise Rates More Than 50bps, Now Sees 75bps Next Week
The calls for the fed to be more aggressive on rate hikes next week, following today's blistering hot CPI number of +8.6%, continue to grow.
Barclays' Jonathan Millar is out with a mid-day call Friday for the FOMC to raise rates 75 bps at next week's meeting.
"The May CPI was even firmer than expectations, driven by broad-based price pressures," Millar commented. "With little indication that these have peaked, we now expect the FOMC to hike 75bp at next week’s meeting."
While the market is still pricing in a 50 bps hike, Millar said the Fed needs to be more aggressive.
"We realize it is a close call and that it could play out in either June or July. But we are changing our forecast to call for a 75bp hike on June 15," he added. "We have also lifted our forecast for the terminal rate by 25bp, to 3.00-3.25%, in early 2023."
Earlier today, CNBC's Jim Cramer called for a 100bps hike from the Fed. He thinks the market could rally on an aggressive hike.
By StreetInsider.com Staff
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Why bad data isn't good for stocks
- Tepid US data hits stocks, lifts Treasury yields to over 5-month high
- Can Boeing overcome struggles? Analysts see 'path back to normal' after earnings
Create E-mail Alert Related Categories
Analyst Comments, Hot List, Trader TalkRelated Entities
Jim Cramer, Federal Open Market Committee, BarclaysSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!