(Bloomberg) — Traders are betting the Federal Reserve will raise rates by three quarters of a percentage point at least once in its next three meetings to cool the hottest inflation in four decades.

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Money markets are pricing 175 basis points by its September decision, implying two half-point and one 75 basis points hike. That’s upgraded from only fully pricing half-point hikes previously. The last 75 basis-point hike by the Fed was made in November 1994.

Economists at Barclays Plc and Jefferies LLC have upped the ante on Fed rate expectations, saying a 75-basis-point move could come early.

Barclays, Traders Set Sights on Fed Rate Hike of 75 Basis Points

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