Powell talking faster than fast
Tuesday 22nd March 2022Bond yields have moved sharply higher as markets expect the Fed to move faster on rate rises and, potentially, drawdowns on the balance sheet. After Jerome Powell spoke overnight, NAB\u2019s Ray Attrill says there\u2019s now a much stronger expectation that April\u2019s meeting will see a 50 basis point rate hike and, perhaps, the same again at the next meeting. Could the ECB also be stepping up its plan of action? Christine Lagarde talks later today. Inflation worries won\u2019t be helped by the rise in oil prices, with no obvious short-term solution. An increase in production from Saudi Arabia seems unlikely because they are upset about the US withdrawal of arms sales over the war in Yemen. The Ukraine crisis looks set to continue, and any step up in action by Russia could increase the extent of sanctions including the possibility of an oil ban by the EU.
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