JPMorgan now sees Fed hiking interest rates 9 times to combat red-hot inflation

JPMorgan Chase economists now see the Federal Reserve hiking interest rates nine consecutive times as central bank policymakers look to tackle hotter-than-expected inflation.

In an analyst note to clients, the JPMorgan economists – led by Bruce Kasman – projected nine, quarter-percentage-point rate increases at every policy-setting meeting until March 2023.

"We now look for the Fed to hike 25bp at each of the next nine meetings, with the policy rate approaching a neutral stance by early next year," the note said.

The revised outlook comes after the Labor Department reported that the consumer price index rose 7.5% in January from a year ago, marking the fastest increase since February 1982, when inflation hit 7.6%. The CPI – which measures a bevy of goods ranging from gasoline and health care to groceries and rents – jumped 0.6% in the one-month period from December.