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BNP Paribas expects four U.S. Fed rate hikes of 50 bps each

Economy May 05, 2022 03:05AM ET
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© Reuters. A man walks past the logo of BNP Paribas at the bank's building in Issy-les-Moulineaux, near Paris, France, February 3, 2022. REUTERS/Gonzalo Fuentes

HONG KONG (Reuters) - Analysts at BNP Paribas (OTC:BNPQY) expect the U.S. Federal Reserve to hike interest rates by 50 basis points (bps) four times in succession, they said on Thursday, pointing to the bank's resolve to frontload rate tightening due to inflation pressures.

On Wednesday, the U.S. central bank raised its benchmark overnight interest rate by half a percentage point, its biggest jump in 22 years. BNP forecasts three more hikes of the same size at the Fed's June, July and September meetings, then a shift to 25 bps moves afterwards.

Its chair, Jerome Powell, said policymakers were ready to approve half-percentage-point rate hikes at policy meetings in June and July.

(This story corrects to clarify the forecast of four big rate hikes include Wednesday's)

BNP Paribas expects four U.S. Fed rate hikes of 50 bps each
 

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Comments (3)
jason xx
jason xx May 05, 2022 5:48AM ET
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I don't understand why every analyst feels the need to add on to whatever the fed says?
FMGK Blue
FMGK Blue May 05, 2022 3:33AM ET
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June clearly, July may be... September is a brave call. Let's see how the stock market and the job market look like in August... Q1 GDP was already awful if Q2 recedes Powell will be ordered to stop.
Fernando Saldanha
Fernando Saldanha May 05, 2022 3:23AM ET
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Hard to believe the Fed will do this. Powell was humiliated when he tried to do this in November 2018. He will cry uncle again as soon as it becomes clear the stock market is collapsing and the economy is going into a recession.
jason xx
jason xx May 05, 2022 3:23AM ET
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definitely
 
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