75bps. And Another 75bps in July?

Apollo Chief Economist

The Fed delivered 75bps and said that we could get another 75bps in July. The speed with which the Fed has changed its view on where short rates will be is unprecedented. In March 2021, the FOMC said the Fed funds rate by the end of 2022 would be 0%. Today they are saying that the Fed funds rate by the end of 2022 will be 3.4%, see chart below.

Chart forecasting hawkish Fed action
Source: FOMC Summary of Economic Projections, Apollo Chief Economist

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