Analysts at Bank of America (BofA) justify their outlook on seven rate hikes by the US Federal Reserve (Fed) this year.

Key quotes

“Rapidly rising wages as a key factor in their projection of seven interest rate rises to come in 2022:

7*0.25% increases in 2022

4*0.25% to follow in 2023.”

“If I’m the Fed, I’m getting more nervous that it’s not just a few outliers.”

“If I were the Fed chair ... I would have raised rates early in the fall. When we get this broad-based increase and it starts making its way to wages, you’re behind the curve and you need to start moving.”