Fed likely to raise rates by 100 points at September meeting, says Nomura

Nomura economics analyst Aichi Amemiya said the August CPI report suggests a series of upside inflation risks may be materializing, which is likely to result in the Federal Reserve raising rates by 100 basis points at the September FOMC meeting, above the firm’s previous forecast for a 75 point hike. The firm continues to expect a 50 point hike in November and now sees another 50 point hike in December, noting that its terminal rate forecast now stands at 4.5%-4.75%, which is 50 basis points higher than its prior view.