By Investing.com Staff
The clatter of a larger 50 bps rate hike at this week's FOMC meeting continues to grow following last week's red-hot inflation numbers. Several Wall Street firms are now calling for 75 bps and some are joining Jim Cramer in his call for a 100 bps hike.
Both Barclays (LON:BARC) and Jefferies are now calling for 75 bps.
On Friday, Barclays' Jonathan Millar said the Fed needs to be more aggressive and sees the terminal rate at 3.00-3.25% in early 2023.
Meanwhile, Jim Cramer said last week the Fed should raise 100 bps to "get it over with." He thinks the market could rally with such an aggressive move from the Fed to combat inflation.
Cramer is not the only one that thinks a 100 bps hike could be forthcoming.
Steven Englander, global head of G-10 FX research at Standard Chartered (LON:STAN) Bank (OTC:SCBFF), told Bloomberg that if the Fed is trying to erase any perception that they’re behind the curve they should go 100 bps.
Englander commented, “Fifty was the big round number six months ago. Meanwhile, 75 is a very middling type of hike. So the Fed might say: ‘Look, if we want to show commitment, let’s just do 100.’”
The FOMC meeting is scheduled for Tuesday and Wednesday (June 14, 15th) and the rate hike decision will be made public at 2 PM EST.