(Reuters) – Morgan Stanley (NYSE:) The U.S. Federal Reserve will raise interest rates six more times in the year, totaling 150 basis points. This is a quicker increase than was previously expected, according to research from the bank.

After hotter than expected inflation data, major investment banks are planning for strong interest rate increases in 2022. This is because they feel that the Fed must take a stronger stand against rising prices.

Morgan Stanley Chief U.S. Economist stated that “Following our recent inflation outlook changes, we now anticipate the Fed to deliver six 25bp rises this year.” In the report, Ellen Zentner, economist wrote.

According to Morgan Stanley, the Fed will likely raise rates 25 basis points after its March policy meeting. There are additional 25 basis-point hikes in May and June, July and two more hikes in September, December and December.

Last week’s data showed that consumer prices in the United States rose at the fastest rate since 1980. This fuelled market speculation about a massive 50 basis-point increase by the Fed during its March 15-16 meeting.

Morgan Stanley previously stated that 125 basis points would be appropriate for policy tightening in this year’s fiscal year.

The Fed funds current effective target for 0-0.25%