Federal Reserve may go easy after 75 basis-point rate hike next week

Powell has said either 50 or 75 basis points would be on the table at the Fed's July 26-27 meeting

Federal Reserve Chair Jerome Powell is likely to slow the pace of interest-rate increases after front-loading policy with a second straight 75 basis-point hike next week, economists surveyed by Bloomberg said.

They expect the Federal Open Market Committee to lift rates by a half percentage point in September, then shift to quarter-point hikes at the remaining two meetings of the year. That would lift the upper range of the central bank’s policy target to 3.5 per cent by the end of 2022, the highest level since early 2008.
 

For the September meeting, the survey is slightly more dovish than interest-rate futures