Fed: Rapidly rising wages justify projection of seven rate rises in 2022

Analysts at Bank of America (BofA) justify their outlook on seven rate hikes by the US Federal Reserve (Fed) this year.

Key quotes

“Rapidly rising wages as a key factor in their projection of seven interest rate rises to come in 2022:

7*0.25% increases in 2022

4*0.25% to follow in 2023.”

“If I’m the Fed, I’m getting more nervous that it’s not just a few outliers.”

“If I were the Fed chair ... I would have raised rates early in the fall. When we get this broad-based increase and it starts making its way to wages, you’re behind the curve and you need to start moving.”