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Will the Federal Reserve surprise markets next week?

Markets Questions is the FT’s guide to the week ahead

Is there any room for the Fed to surprise markets next week?

The Federal Reserve is widely expected to raise interest rates by 0.75 percentage points at its July policy meeting next week.

Officials such as Fed governor Christopher Waller have in the past few weeks signalled that the central bank will deliver the same size interest rate increase as last month, following an inflation report showing that consumer prices in June rose to fresh 40-year highs.

The report also showed a sharp rise in so-called core inflation — which strips out the volatile food and energy sectors — led by higher rent and shelter costs.

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