Fast or Slow? Markets Debate on Pace of Fed Rate Increases

The Federal Reserve building in Washington, on Oct. 22, 2021. Daniel Slim/AFP via Getty Images

The latest debate on Wall Street is on whether the Federal Reserve will be aggressive or cautious when raising interest rates.

Last week, the U.S. annual inflation rate surged to a market-defying 40-year high of 7.5 percent in January. Prices were up across the board, from food to energy to shelter.