According to analysts, following weak U.S. inflation data, the Fed will decide next week to raise rates by 75 basis points. This would be the third large-scale increase in a row, writes "Prime". Experts believe the trend will continue in the future.
Their point of view is shared by traders trading Fed Funds rate futures. After Tuesday's inflation data, they do not consider the possibility of a rate hike of less than 50 basis points at the next meeting.
The Fed's aggressive rate hike, implemented as part of its fight against record inflation, poses a threat to the U.S. economy, especially as it entered recession in the first two quarters. Major U.S. stock indexes were up Wednesday after yesterday's 0.097% to 0.74% fall; Carl Haelling, an analyst at German bank LBBW, attributed this dynamic to a technical rebound, noting the strength of yesterday's sell-off in the stock market and the depressed mood of investors.