(Bloomberg) -- Traders are betting the Federal Reserve will raise rates by three quarters of a percentage point by September to cool the hottest inflation in four decades.
Money markets upgraded their bets from a half-point hike previously. The shift follows a bruising bond selloff on Friday that sent two- and five-year yields to the highest since 2008 and briefly inverted a key part of the Treasury curve -- a signal to some investors that Fed tightening will plunge the economy into a recession.
Economists at Barclays Plc and Jefferies LLC have upped the ante on Fed rate expectations, saying a 75-basis-point move could come early.
Barclays, Traders Set Sights on Fed Rate Hike of 75 Basis Points
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