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S&P Global's chief economist expects Fed's fund rate to rise to 4%

This could result in a further rise in bond yields in major economies including India

The Federal Reserve is now expected to hike interest rates by 75 basis points Wednesday, just weeks after Chair Jerome Powell and his team repeatedly advertised a half percentage point move. (Photo: Bloomberg)
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A rise in the Fed fund rate to 4 per cent is expected to put upward pressure on bond yields across major economies including India

Krishna Kant Mumbai
The global rating agency S&P Global expects the United States Federal Reserve policy rate or the fed fund rate to rise to as high as 4 per cent as it fights a policy battle to bring down inflation in the world’s biggest economy. The US central bank has already raised its policy rate four times this year for a total of 225 basis points. One basis point is one-hundredth of a per cent.

“The core consumer inflation remains persistently high in the United States and the emerging consensus among economists is that Fed may have to raise its policy rate

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First Published: Sep 21 2022 | 11:51 PM IST

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