May 05, 2022 14:43 GMT
May’s FOMC was hawkish, but not enough to meet heightened market rate hike expectations.
- May’s FOMC was hawkish, but not enough to meet heightened market rate hike expectations.
- Near-term rate hikes repriced lower and risk assets rallied following Chair Powell’s explicit guidance for 50bp hikes at the next couple of meetings, while downplaying the possibility of 75bp increases.
- The bar to non-50bp moves in June/July is high, but the path in 2H 2022 will be very much data-dependent.
FOR FULL PDF ANALYSIS PLEASE USE THE FOLLOWING LINK:
Intraday 5Y US Real Rates (TII Yield) And Breakeven Inflation, %Source: Bloomberg
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