FOMC Takes Centre Stage as Markets Remain in a Holding Pattern
Fundamental Overview Markets remain in a waiting phase ahead of tonight’s FOMC decision, with a 25-basis-point rate increase from 3.75% to 4.00% expected. Attention will extend beyond the rate decision itself to the message on the US economy and the path for monetary policy. UK inflation rose to 3.1% year-on-year from 2.9%, in line with…
Hawkish Fed Reinforces Risk-Off Bias, but Markets Remain Resilient
Fundamental Overview The Federal Reserve delivered a 25-basis-point rate hike, beginning what could develop into a broader rate-hiking cycle. Market pricing now points towards the possibility of further increases, potentially taking the federal funds rate towards 4.75% over the coming months. The key message is that financial conditions are not considered restrictive enough. Combined with…