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Does Powell want to surprise the markets?

Jerome Powell

Will the Fed chair surprise markets today?

(Photo: AP)

Frankfurt Will the US Federal Reserve try to surprise markets on Wednesday? This question is currently being hotly debated among investors and economists. Until recently, it was considered agreed that on Wednesday evening at 8 p.m. European time, as in May, it would announce another interest rate hike of half a percentage point (50 basis points). However, the pressure to combat inflation, which has recently risen to 8.6 percent, could lead to an increase of 75 basis points.

Citigroup economists expect the Fed to hike 75 basis points on Wednesday, leaving the scope of further moves open. But they also think it is possible that they are already announcing 75 basis points for July.

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