Why Does Raphael Bostic Believe The Fed Will Raise Interest Rates By 100 Points?

Following June's 9.1% month-over-month increase in inflation, economists are expecting the Federal Reserve Bank to take serious action. 

The jump in inflation was much higher than what analysts and economists were predicting. 

The nation remains in a cycle of increasing inflation followed by Federal Reserve interest rate hikes and this month will be no different. 

Following the consumer price index release Atlanta Federal Reserve Bank President Raphael Bostic shared with the media that he expects the national Federal Reserve Bank to hike intrest rates by 100 points (1%) in July, according to Reuters.

In June, the Fed raised rates by 75 points (0.75%). 

Also Read: As US Economy Weathers Inflation, GDP Growth Turns Negative: Are We Headed For A Recession?

Fed futures show that investors believe a 100-point hike has an 80% chance of occurring

Bostic said Federal Reserve Chair Jerome Powell "has been clear, and I think I've been clear as well, that without price stability, it's hard to imagine how this economy is going to grow in a robust and sustainable way."

Related Article: US Treasury Yield Curve Inverts Again As Dow Jones Index Plummets 130 Points

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