May 02, 2022 18:07 GMT
MNI Fed Preview - May 2022: Nearing Peak Hawkishness
May’s FOMC decision will be the most hawkish in recent memory, but aggressive market hike pricing limits the potential impact.
EXECUTIVE SUMMARY:
- May’s FOMC decision will be the most hawkish in recent memory, with a 50bp hike and the launch of balance sheet reduction.
- However, already aggressive market hike pricing limits the potential hawkish impact.
- Focus will be on the FOMC’s openness to 75bp hikes and/or moving above “neutral”, and any hint of asset sales.
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