Economists at Danske Bank definitely think that it is the right call for the Federal Reserve to front-load rate hikes. They change their Fed call accordingly by now calling for 50bp rate hikes in both May, June and July and 25bp on each of the following meetings in 2022.

No one is ruling out 50bp rate hikes

“We now expect the Fed to deliver 50bp rate hikes in May, June and July. We expect the Fed to hike by 25bp at each of the following meetings, implying a Fed funds rate of 2.50-2.75% by year-end.”

“Risk is still skewed towards faster rate hikes and we cannot rule out a larger 75bp rate hike at some point or that the Fed continues hiking by 50bp for longer.”