The Fed is about to jack up interest rates, Wall Street says

Earlier this year, the Federal Reserve turned to its most potent weapon — raising interest rates — to combat soaring inflation. But with consumer prices having only accelerated since then, Wall Street analysts say consumers and investors should gird for an even bigger hike this week as central bankers try to tame the nation's fiercest bout with inflation in 40 years. 

The Fed, which will announce its decision on Wednesday at 2 p.m. Eastern time, could lift rates by 0.75%, according to analysts at TD Macro. That would come after announcements of a 0.25% hike in March and a 0.5% move in May — with the latter marking the sharpest increase since 2000.

If the Fed decides on a three-quarter point boost, it would be the first rate hike of that size since 1994. Analysts at Deutsche Bank said in a report on Tuesday that they expect 0.75% hikes at the central bank's meetings both this week and in July, underscoring what they called a "need for speed" in clamping down on inflation.