Most economists predict 3-4 rate hikes in 2021. Bloomberg economists predicts 5 rates hikes. BOA economist, “hold my beer…”
Ethan Harris, chief global economist for Bank of America, thinks that if you are pricing in 3 rates hikes you are short by more than half…
“The Fed is likely to raise its now near zero short-term interest rate target seven times over the course of this year, on its way to a stopping point of between 2.75% and 3%…”
Harris also trimmed his growth outlook for this year to a 3.6% increase, and he now sees inflation, stripped of food and energy costs, rising by 3%, from 2.6%, over 2022.