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Economists now expect the federal funds rate to peak at 5.25%, vs. the 5% they expected just last month.
The latest Bloomberg economist survey expects another 75 bps rate hike next week, and additional increases bringing rates to 4% by year-end.
Some think that the short-term definition of "neutral" should be higher than the Fed's long-term estimate of 2.5 percent.
A surge in consumer spending, due to pent-up demand during the pandemic, is expected to give the economy a significant bump later this year.