The Federal Reserve is going to have to play catch up.
A month ago, after the last meeting of the Federal Open Market Committee (FOMC), Fed Chairman Jerome Powell said that a 75-basis point hike was not something the committee was considering. Following the meeting, there was a lot of dovish talk about the Fed pausing in September after a couple of 50-basis point hikes.
On Monday night, however, the Wall Street Journal published a piece that appears to be a message from Fed officials that they are going to announce a three-quarter of a point hike when the two-day FOMC meeting concludes tomorrow. Certainly, the futures market is convinced of this. A week ago, it had the odds of a 75-basis point hike