“The idea that inflation had peaked has been dispelled and now the likelihood of that soft landing for the economy has only decreased,” she said. “Expect long-bond yields likely to come down leading up to the September meeting as recessionary risk increases.”
Others believe 100 basis points is still unlikely.
“The Fed will want to follow what the market expects and the market is really expecting a 75 basis points move -– so that’s what the Fed will do,” said Tom Di Galoma, managing director at Seaport Global Holdings LLC in New York.
-With assistance from Liz Capo McCormick, Isabelle Lee, Natalia Kniazhevich, Edward Bolingbroke and Patrick McHale.
This article was provided by Bloomberg News.