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Is the Fed’s July rate hike a certainty by 75 basis points?

Today on Thursday (June 30), the us dollar opened at 105.11 and closed at 105.10 yesterday. So far, the highest has touched 105.16 and the lowest has been 105.05. Temporarily reported 105.13, an increase of 0.02%. The British pound was temporarily reported at 1.2121, a decrease of 0.03%; the Canadian dollar was temporarily reported at 0.7753, an increase of 0.02%.

On June 29, local time, Cleveland fed President Loretta Mester (FOMC vote committee) said that if the economic situation remains unchanged when the Fed decides on monetary policy in July , she will advocate a 75 basis point increase in interest rates.

On Tuesday, New York Fed President John C. Williams also echoed Fed Chairman Powell’s previous views on raising interest rates at the July meeting, arguing that a rate hike of 50 or 75 basis points will clearly be the focus of the debate.

Meanwhile, a number of other policymakers, including Fed Governors Michelle Bowman and Governor Christopher Waller, have previously expressed support for a 75 basis point rate hike next month. Minneapolis Fed President Neel Kashkari (once a major dovish) also said he may support a 75 basis point rate hike next month. Chicago Fed President Charles Evans (Charles Evans) said it is “reasonable” to consider another 75 basis points of interest rate hikes. San Francisco Fed President Mary Daly also said last week that she was prepared to support another 75 basis point rate hike at its next meeting.

Powell: The U.S. economy is actually in a fairly strong state. The past year has been called the “Great Restart” year of the U.S., so this year’s economic growth may slow down. At the same time, the Fed’s interest rate hike is also to reduce growth and provide the supply side with an opportunity to catch up. The Fed hopes that raising interest rates will bring inflation back to 2% while ensuring a healthy labor market, but this is not a sure thing.

“From the perspective of market performance, after the Fed’s interest rate meeting in June , the market’s path for later rate hikes quickly adjusted and remained relatively stable until more data was released.” Cao Yubo said that the Fed’s subsequent rate hike path will mainly depend on inflation trend. If the U.S. inflation growth rate remains high and does not fall back, the pace of Fed rate hikes may be further accelerated, especially the June CPI data will likely directly affect the Fed’s rate-setting meeting in July. If the CPI increase in June falls, the current market expectation of a 75 basis point rate hike will be fulfilled with a high probability, otherwise the possibility of the Fed raising interest rates by 100 basis points cannot be ruled out.