Economics
Fed Could Weigh Historic 100 Basis-Point Hike After Inflation Scorcher
- Futures show one-in-two chance of super-sized July move
- 75 basis points now also in play for Fed’s September meeting
WATCH: Federal Reserve's Mester: CPI Data Gives No Reason for Smaller Hike
Source: Bloomberg
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Federal Reserve officials may debate a historic one percentage-point rate hike later this month after another searing inflation report piled pressure on the central bank to act.
“Everything is in play,” Atlanta Fed President Raphael Bostic told reporters in St. Petersburg, Florida, on Wednesday after US consumer prices rose a faster-than-forecast 9.1% in the year through June. Asked if that included raising rates by a full percentage point, he replied, “it would mean everything.