JPMorgan’s Michael Feroli now expects seven interest rate hikes from the Federal Reserve this year, up from his previous expectation of five hikes, following yesterday’s release of the latest meeting minutes. Feroli no longer expects two pauses in 2022 but continues to predict three rate hikes in 2023. “Several developments” contribute to the revised outlook, including the increase in the January CPI, which the analyst says points to “risks of a more entrenched inflation problem.” As the minutes “reasonably noted, faster-than-expected inflation means more rate hikes,” Feroli told investors in a research note dated Wednesday. In addition, the growing hawkishness of other large central banks should reduce the risks of extreme dollar strength as a reason for the Fed to take a pause, he wrote. Feroli does not believe the recent Federal Reserve rhetoric as advocating a 50 basis point hike in March. He notes that “well-sourced members of the Fed press corps” uniformly pushed back against the 50 basis point hike case made by James Bullard.