This has been raised as a potential course of action by St Louis Fed President James Bullard.

'That said, the weakness in GDP makes it less likely that we will hear the Fed explicitly making the case for a more aggressive 75bp hike at the June or July FOMC meetings. Indeed, we don't expect inflation readings to drop meaningfully below 4% before year end.' Wages are rising rapidly amid a dearth of workers and this will contribute to keeping inflation elevated through this year. 'Moreover, consumer spending remained firm and the contribution from investment was solid and we expect this to continue into the second quarter. 'What's priced for Fed tightening and how it stacks up against previous cycles?' 'The Federal Reserve is widely expected to raise its policy rate by 50 basis points next Wednesday as 8%+ inflation and a tight labour market trump the surprise 1Q GDP contraction attributed to temporary trade and inventory challenges.' We continue to see the risks skewed toward swifter, more aggressive action' The negative 1Q GDP print will be shrugged off with quantitative tightening also announced. 'A 50bp ( basis point) interest rate hike from the Federal Reserve is widely expected given recent commentary from officials and the fact inflation is well above target and unemployment is just 3.6%.

Next federal reserve meeting 2022