Wall Street traders are pricing in June rate hikes and further tapering of bond purchases by the Fed after President Joe Biden on Monday picked Jerome Powell to lead the central bank for another four years.
From the current near-zero level that began in March 2020, traders expect at least a 25-basis point hike in June 2022. Besides this, they are also anticipating a 62 percent chance of at least three increases over the course of the year. Over 30 percent believe there will be a fourth rate hike by the end of 2022.
