JPMorgan raises Fed rate hike expectations

JPMorgan Chase & Co. The Fed raised its interest rate hike expectations for the next two-month meeting. Economists, who previously expected an increase of 25 basis points at each meeting, now expect an increase of 50 basis points at each meeting.

Economists led by Michael Feroli wrote in a note to their customers that “Fed officials seem to be more willing to increase interest rates by 50 basis points. For this reason, we increased our rate hike forecast by 25 basis points each to 50 basis points for May and June. We expect it to continue with 25 basis points increases in July and beyond," he said.

It was stated that Chairman Jerome Powell's rhetoric that '50 basis point interest rate hike is on the table' last week was effective in changing expectations, and it was stated that the indifference of the market to the hawkish rhetoric at the FOMC meeting may also have caused the Committee to signal faster tightening.