The US Federal Reserve is set to deliver its policy verdict later today after a two-day meeting, with markets bracing for a fresh rate hike as inflation, bond yields and oil prices continue to climb. Traders are heavily pricing in a 25-basis-point increase that would take the benchmark rate to 3.75%-4.00%, with policymakers expected to signal further tightening ahead.
Morgan Stanley has also joined a growing number of major Wall Street banks taking a more hawkish view on global interest rates. The brokerage is forecasting additional monetary tightening by both the US Federal Reserve and the European Central Bank as inflationary pressures remain persistent, Reuters reported.
