Morgan Stanley expects Fed to hike rates six times in 2022

REUTERS: Morgan Stanley expects the U.S. Federal Reserve to raise interest rates six times this year for a total of 150 basis points, a faster increase than previously predicted, according to a research report from the bank.

Major investment banks have been penciling in an increasingly strong run of interest rate hikes for 2022 after hotter-than-expected inflation data ramped up pressure on the Fed to take a firmer stand against soaring prices.

“Following the recent changes to our inflation outlook, we now expect the Fed to deliver a total of six 25bp hikes this year,” Morgan Stanley Chief U.S. Economist Ellen Zentner wrote in the report.