Fed’s hawkish move takes markets by surprise

The Fed did almost exactly what was expected, but the small surprise made a big difference. Once again, this surprise came from the “Dots”, i.e. the individual Fed members’ rate forecasts. A shift from 2024 to 2023 for the 1st rate hike was expected. But not two rate hikes as soon as 2023. Bond yields jumped higher (although they have returned to their level of the beginning of last week), equities had a bad day in the US and overnight in Asia and the USD rebounded, the EUR/USD pair falling straight from 1.21 to below 1.20. The debate on the transitory nature of inflation will not close quickly.

Share this news :

You might also read :

ES-oil
March 18, 2021

Margins collapse

Crude prices continued to weaken on Wednesday despite the dollar edging lower, as the physical market’s weakness filtered through the futures’ market. Weak physical crude…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Subscribe to our newsletter

Don’t have an account yet? 

[booked-calendar]