{"id":12714,"date":"2022-06-14T05:27:05","date_gmt":"2022-06-14T05:27:05","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/jpmorgan-economist-expects-the-fed-to-hike-benchmark-rate-by-75-bps-as-global-markets-bleed-economics-bitcoin-news\/"},"modified":"2022-06-14T05:27:05","modified_gmt":"2022-06-14T05:27:05","slug":"jpmorgan-economist-expects-the-fed-to-hike-benchmark-rate-by-75-bps-as-global-markets-bleed-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/jpmorgan-economist-expects-the-fed-to-hike-benchmark-rate-by-75-bps-as-global-markets-bleed-economics-bitcoin-news\/","title":{"rendered":"JPMorgan Economist Expects the Fed to Hike Benchmark Rate by 75 bps as Global Markets Bleed \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n<\/div>\n

The U.S. Federal Reserve is expected to raise the federal funds rate during its next meeting on Wednesday and JPMorgan economist Michael Feroli believes that rising inflation will push the Fed to increase the rate by 75 basis points (bps). Last week, CME Group data indicated the market priced in a 95% chance that the U.S. will see a 50 bps rate hike this month. Although, while some expect a hawkish Fed, some believe the U.S. central bank may act dovishly if markets get worse.<\/strong><\/p>\n

Global Markets Shudder With Focus Directed at the Fed\u2019s Next Rate Hike \u2014 JPMorgan Economist Expects a 75 bps Increase<\/h2>\n

Major U.S. stock indexes and cryptocurrency markets dropped significantly on Monday, as the day was considered one of the bloodiest starts to the week in a long time. CNBC\u2019s Scott Schnipper said<\/a> on Monday that the \u201cS&P 500 is now in an official bear market, according to S&P Dow Jones Indices.\u201d<\/p>\n

\"JPMorgan<\/p>\n

Precious metals like gold and silver dropped in value as well, as gold\u2019s price per ounce slipped 2.67% and silver dropped 3.58%. The entire crypto economy lost 18% during the course of the day on Monday and BTC<\/a> dropped below $21K. Currently, all eyes are on the upcoming Federal Open Market Committee (FOMC) meeting where members of the Federal Reserve System are expected to raise the federal funds rate.<\/p>\n

\"JPMorgan
BTC<\/a>\/USD 5-minute chart at 10:15 p.m. (ET) on Monday, June 13, 2022.<\/figcaption><\/figure>\n

Moderate increases can be between 25 to 50 bps. The Fed can go as high as 75 to 100 bps during the next meeting and some are predicting<\/a> 75 basis points is in the cards. Last week, CME Group data had shown the market priced in a 95% chance<\/a> that the Fed would raise the benchmark rate by 50 bps. However, JPMorgan economist Michael Feroli thinks a 75 bps increase is coming and 100 bps is also possible.<\/p>\n

Feroli told<\/a> clients in a note on Monday that a \u201cstartling rise in longer-term inflation expectations\u201d may push the Fed to increase the rate by 75 basis points on Wednesday. \u201cOne might wonder whether the true surprise would actually be hiking 100bp, something we think is a non-trivial risk,\u201d Feroli added.<\/p>\n

Goldman Sachs Economists Predict a 75 bps Hike \u2014 JPMorgan Strategist Marko Kolanovic Thinks a Dovish Surprise Could Happen<\/h2>\n

Goldman Sachs economists agree with Feroli as they believe<\/a> a 75 bps hike will likely be announced at the FOMC meeting. \u201cOur Fed forecast is being revised to include 75 bps hikes in June and July,\u201d Goldman economists explained on Monday.<\/p>\n

The Goldman Sachs analysts\u2019 note to investors adds:<\/p>\n

\n

We anticipate two more rate increases in 2023 to 3.75-4%, followed by one cut in 2024 to 3.5-3.75%. We anticipate a 50bp increase in September, followed by 25bp increases in November and December, for an unchanged terminal rate of 3.25-3.5%. We expect the median dot to show 3.25-3.5% at end-2022.<\/p>\n<\/blockquote>\n

Meanwhile, despite Feroli\u2019s 75 bps prediction, JPMorgan\u2019s Marko Kolanovic<\/a> told the press that the U.S. will likely avoid a recession. The strategist at JPMorgan Chase & Co. explained that Fed may act dovish going forward due to the craziness in bond markets and stock markets as well.<\/p>\n

\u201cFriday\u2019s strong CPI print that led to a surge in yields, along with the sell-off in crypto over the weekend, are weighing on investor sentiment and driving the market lower,\u201d Kolanovic\u2019s note to clients detailed<\/a> on Monday. \u201cHowever, we believe rates market repricing went too far and the Fed will surprise dovishly relative to what is now priced into the curve,\u201d the JPMorgan strategist added.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
CME Group<\/a>, CPI<\/a>, Crypto markets<\/a>, Dovish<\/a>, economics<\/a>, Economy<\/a>, Fed<\/a>, Federal Reserve<\/a>, FOMC<\/a>, Goldman Sachs economists<\/a>, Hawkish<\/a>, inflation<\/a>, JPMorgan economist<\/a>, JPMorgan strategist<\/a>, Markets<\/a>, Markets Shudder<\/a>, Marko Kolanovic<\/a>, Michael Feroli<\/a>, Moderate<\/a>, Predictions<\/a>, Stock Markets<\/a>, US economy<\/a><\/div>\n<\/div>\n

What do you think about the upcoming FOMC meeting and the next rate hike? Do you think it will be moderate or aggressive? Or do you think a dovish surprise is in the cards? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

\n
\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n