Indonesia Plans Higher Asset Yields to Boost Rupiah and Restore Investor Confidence 
Jerome Powell Warns Against Politicizing the Federal Reserve, Defends Democratic Institutions 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Fed’s Anna Paulson Signals Rates Could Stay Higher Longer Amid Inflation Risks 
ECB Warns Euro Zone Inflation Will Keep Rising Despite Strait of Hormuz Reopening 
RBI Holds Interest Rates at 5.25%, Cuts India Growth Forecast Amid Rising Global Risks 
ECB Signals Possible Rate Hike as Iran Conflict Fuels Inflation Concerns 
Uruguay Central Bank Holds Interest Rate at 5.75% Amid Inflation and Oil Price Concerns 
BoE Policymaker Alan Taylor Signals No Need for Interest Rate Hike Amid Iran War Inflation Risks 
After yesterday’s FOMC minutes gave clearest indication ever for a June rate hike, interest rates market have adjusted sharply in anticipation of such.
As per the minutes, many participants believed a riser would be appropriate at June meeting if the economic data and job market conditions continue to improve as inflation heads towards 2% target in the medium term.
- Market is now attaching 70% probability that there won’t be a hike in June, compared to 81% before the minutes.
- Market is attaching 51% probability that there will be a hike in July, compared to 62% before, predicting no hike.
- Before minutes market was pricing 55% chance of a hike in September, now pricing 63% odds of such.
- Market is attaching 66% hike probability in November compared to 58% before and 79% probability for December, up from 72% before.
Dollar index is currently trading at 95.22, down -3.45% YTD.
