Dollar gains as Wall Street retreats on future Fed hikes

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FOMC: Nomura Now Expects a 50 BPS Rate Hike in March From Fed While BNP Paribas Calls for 6 Hikes; Morgan Stanley Says Forget About Forward Guidance

January 27, 2022 6:55 AM EST

Global investment banks rushed to change their Federal Reserve rate calls on Thursday after the central bank said it plans to maintain its tight policy in an effort to suppress inflation.

Jerome Powell, Chair of the Federal Reserve, hinted that the central bank intends to hike interest rates in March and stop bond purchases.

In response to a surprisingly hawkish press conference from Powell, Japans largest investment bank Nomura said it anticipates a rate hike of 50 basis points in March.... More