Part 2/4:
Given the extraordinary inflation figures, a historic one-percentage-point increase in interest rates appears to be on the table. Such a move would mark a significant escalation from previous rate hikes and signifies the Fed’s intent to adopt an extremely aggressive stance. The central bank is likely to aim for an overcorrection to bring inflation back under control swiftly, which in practice could mean raising interest rates by 100 basis points during the upcoming July Federal Open Market Committee (FOMC) meeting.