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The Federal Reserve is expected to raise interest rate by 75 basis points this week - the biggest hike since 1994 - compared to previous estimates of 50 basis points, The Wall Street Journal and CNBC TV reported.
The likely move is due to the accelerated US inflation rate to 8.6% in May, the highest since 1981, according to official data issued on June 10.
Investors expect more than a 93% hike in interest rate to a target range of 1.50-1.75%, compared to the current range of 0.75-1%.
Goldman Sachs and Nomura Holdings analysts revised their forecasts for the monetary policy committee’s decision this week and in late July to a 75-basis-point hike from 50 basis points previously.
Earlier this month, Barclays and Jefferies expected the Fed to raise interest rate by 0.75% during this month's meeting on higher-than-expected inflation.
The Fed and its Chairman, Jerome Powell, have been criticized for delay in withdrawing the monetary stimulus that was launched during the outbreak of COVID-19, which pushed inflation to its highest level in 41 years.
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