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A Fed Rate Hike of 75 Basis Points Is a Done Deal for Traders

Published 06/13/2022, 03:49 AM
Updated 06/13/2022, 04:09 AM
© Bloomberg. The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Friday, Oct. 8, 2021. The Senate approved legislation Thursday that pulls the nation from the brink of a payment default with a short-term debt-ceiling increase, breaking a weeks-long standoff that rattled financial markets. Photographer: Stefani Reynolds/Bloomberg

© Bloomberg. The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Friday, Oct. 8, 2021. The Senate approved legislation Thursday that pulls the nation from the brink of a payment default with a short-term debt-ceiling increase, breaking a weeks-long standoff that rattled financial markets. Photographer: Stefani Reynolds/Bloomberg

(Bloomberg) -- Traders are betting the Federal Reserve will raise rates by three quarters of a percentage point by September to cool the hottest inflation in four decades.

Money markets upgraded their bets from a half-point hike previously. The shift follows a bruising bond selloff on Friday that sent two- and five-year yields to the highest since 2008 and briefly inverted a key part of the Treasury curve -- a signal to some investors that Fed tightening will plunge the economy into a recession. 

Economists at Barclays Plc and Jefferies LLC have upped the ante on Fed rate expectations, saying a 75-basis-point move could come early.

Barclays, Traders Set Sights on Fed Rate Hike of 75 Basis Points

©2022 Bloomberg L.P.

© Bloomberg. The Marriner S. Eccles Federal Reserve building in Washington, D.C., U.S., on Friday, Oct. 8, 2021. The Senate approved legislation Thursday that pulls the nation from the brink of a payment default with a short-term debt-ceiling increase, breaking a weeks-long standoff that rattled financial markets. Photographer: Stefani Reynolds/Bloomberg

Latest comments

to late!!!!
easiest way to boost the market.  spread the word the rate hike is 3/4 points.  Then FED do a 1/2 point and all the big boys push the market up to take the stops.  The poor retail investors who short now are buying and supporting the market at the day high.  Of cos after the spike,  the dumping starts again.  This script is repeated so many time.
hi michel, i fully agree with you. i have observed what you are saying about the market movement many times.
Fed .75 ll hot my school bag.mk it 1.
Hey Femi…I guess you are a Nigerian. We bear the same surname
Powell likes 75 points.
Joe Biden asIeep at the wheeI or just trying to destroy USA We need Trump back
Thats like Trump not planting the seed on the Spring and then blamong Biden for lack of crops in the Fall lol
We need trump back
Joe keeps sending money to his son Hunter Biden, oops I mean Ukraine
How can I build my account
Wait 6 months for the bottom.
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