Why Warsh Will Have To Hike Over 200bps In The Next 12 Months To Contain Inflation

After a three year hiatus, in his first effective change from the monetary status quo, Fed Chair Kevin Warsh hiked rates by 25bps and hinted that more is coming. The question everyone is asking now is whether he will indeed hike more (much more?), or as Rabobank suggests, will be one and done. 

One answer, theoretical as it may be, comes from Deutsche Bank's Jim Reid whose Chart of the Day focuses on the start of "what’s only the 15th Fed hiking cycle in 70 years."