Persistently high inflation and the threat it might worsen is driving some analysts to argue the Federal Reserve must be more aggressive with interest-rate increases over time as it tries to use monetary policy to bring price pressures to heel.
The latest round of upsized so-called terminal rate forecasts have arrived following the release of the August consumer-price index, which showed underlying levels of inflation grew worse that month. The data was a blow to the idea rooted in other recent reports that the worst of the inflation surge had passed.
