Central Banks

This tweet (below) is from the Wall Street Journal journalist who kicked off the 75bp cascade on Monday afternoon, US time:

  • Why the market now sees an 87% chance of the Federal Reserve hiking 75 basis points

In the tweet, I am not sure if he is hedging his call or not. On balance I don’t think he is. The debate over ‘should they’ is not the same as a debate over ‘will they’.

The warning from Evercore that it risks the Fed looking like they are panicking is not one I subscribe to. The Fed massively messed up on ‘transitory’ inflation. Its a huge policy error. The need now is to fix it, or at least do what they can to fix it. +75 is the bare minimum IMO. The tweet below, citing Deutsche is closer the mark.

This article was written by Eamonn Sheridan at www.forexlive.com.

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