Investment bankers and analysts expect the Fed to raise the rate by 0.75%

More and more market participants agree that the next meeting of the US Federal Reserve will decide on a new increase in the base refinancing rate by 0.75%. This is stated by analysts of the investment company CME Group, referred to by The Wall Street Journal. According to another analyst, Tim Day, senior economist at SGH Macro Advisors, all recent statements by Fed Chairman Jerome Powell about his vision of the immediate prospects for the global and American economies and his determined attitude to fight inflation indicate that the Fed will once again go on a significant increase. rates 0.75%. In July, the US Central Bank raised rate at 0.75%.

Your forecast for the rate at night today, September 8, changed and leading American investment bank Goldman Sachs (GS). If before the bank believed that in September the Fed would raise the rate by 0.5%, and in November – by another 0.25%, now GS analysts believe that in September the rate will be raised by 0.75%, and in November – another 0.5%. “Fed officials have been quite strong lately and made it clear that progress in the fight against inflation is not moving as fast as they would like,” GS economists noted.

Yesterday became knownthat many US retailers and food service chains are issuing bonds in anticipation of another Fed rate hike of 0.75%. September 7 on the issue of bonds for a total of $ 5 billion announced largest American retailer Walmart. On Tuesday, September 6, on the issue of bonds for a total of $1 billion informed another American retailer is Target. On the same day, McDonald’s, a chain of fast food restaurants, issued bonds worth $1.5 billion.

Evgeniy Khvostik