The post-US inflation selloff accelerated yesterday. All assets were heavily sold, and the money piled into the US dollar, as a sign of extreme stress in the market.
Even though the US futures trade in the positive this morning, the risk sentiment is poor, and the fear of seeing the Federal Reserve (Fed) become more aggressive on its rate policy to tame inflation is omnipresent.
The Fed will start its two-day meeting in this absolutely beautiful market environment, after having a hint the recent policy tightening to tame inflation has not worked effectively so far and more needs to be done. ‘More’ means a 75bp hike in one of the next three meetings. It could be today, it could be next month, or in two months.
The post-US inflation selloff accelerated yesterday. All assets were heavily sold, and the money piled into the US dollar, as a sign of extreme stress in the market.
Even though the US futures trade in the positive this morning, the risk sentiment is poor, and the fear of seeing the Federal Reserve (Fed) become more aggressive on its rate policy to tame inflation is omnipresent.
The Fed will start its two-day meeting in this absolutely beautiful market environment, after having a hint the recent policy tightening to tame inflation has not worked effectively so far and more needs to be done. ‘More’ means a 75bp hike in one of the next three meetings. It could be today, it could be next month, or in two months.
Source: Ipek Ozkardeskaya – Swissquote Bank Ltd
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