Markets expect the Fed to make the highest rate hike since 1994 at its meeting this week.
According to experts, the Fed is likely to raise interest rates by 75 basis points this week, due to the inflation data.
The previous expectation for the three meetings was 50 basis point gains each. However now a 175bp rate hike was expected at the next three meetings. This situation seems to indicate the possibility of a double 50 basis point increase and a 75 basis point increase.
Data revealed that inflation in the US rose to 8.6 percent in May, renewing its 40-year peak. Former Fed Chairman Ben Bernanke said in a statement on CNN that he believes the Fed has a chance to prevent it, although there is a possibility of recession.