Chances Of A 75 or 100 BPS Rate Hike Short-Term

“We have been ringing the inflation alarm bell for more than a year. The reality is that when the government prints new money, it must end up somewhere. The Fed will have to tighten much faster than the market anticipates,” says Gary Zimmerman. Will the Federal Reserve shock the economy and put in a 75 or a 100 BPS rate hike to show that they mean business? The FOMC meeting takes place on June 14th and 15th. “There has been optimism in the past year, which has not played out. The economy is driven by supply and demand, and the Fed can only control aggregate demand,” Zimmerman adds.