Investors Increasingly Fear US Recession as Federal Reserve Poised to Hike Interest Rates
“I expect six quarter-point rate hikes from the Fed in 2022," Rob Morgan, senior vice president at Mosaic, told CNBC in the survey. He added that if the consumer price index (CPI), the US Bureau of Labor Statistics’ metric for tracking average price fluctuations, reached 9% in the bureau’s March or April reports, the Fed might take the drastic step of making a 50-basis point increase the following month.
Rising gas prices will only deepen price increase trends created by the COVID-19 pandemic, which strangled international trade and made shipping goods more expensive. The BLS February report revealed the highest inflation rate in 40 years, which Fed board members said was primarily caused by the “supply chain” and not by large spending bills passed by Democrats, as Republicans have claimed.