Fed: Seven rate hikes on the cards this year – BofA

Bank of America (BofA) Chief Economist Ethan Harris remains overtly hawkish on the Fed’s outlook, expecting seven rate hikes this year.

Key quotes

"We point out that markets have underpriced Fed hikes at the start of the last two hiking cycles and we think that will be the case again.”

"Starting in March, we expect the Fed to start raising rates by 25bp at every remaining meeting this year for a total of seven hikes, with four more hikes next year.”

"This would take the terminal rate to 2.75-3.00% by the end of 2023, which should slow down growth and inflation."