Economist warns Fed may need to hike rates more aggressively than expected.

The US Federal Reserve may need to hike interest rates more aggressively later this year if inflation and tight labor markets persist, according to Daniele Antonucci, chief economist and macro strategist at Quintet Private Bank. The market is pricing around a 60% probability that the central bank pauses its monetary tightening cycle at its June meeting. Antonucci suggested that a rate cut "seems an implausible scenario" given the strength of the labor market. The Fed has been hiking rapidly over the past year in a bid to rein in sky-high inflation, but the market expects policymakers to begin cutting rates before the end of the year.