The Fed delivered a widely expected 25bp rate hike, putting inflation firmly ahead of political pressure for lower interest rates. The decision triggered a hawkish market reaction, with short-term Treasury yields jumping, while the longer end and US equities showed a more contained response.
Attention now turns to the Bank of England and Bank of Japan. The BoE faces an increasingly uncomfortable mix of persistent inflation, higher energy costs, fiscal concerns and a weakening labour market, making the path ahead particularly complicated. Meanwhile, the BoJ is expected to raise rates as policymakers try to contain renewed pressure on the yen.
But today’s decisions are only part of the story. The bigger question for markets is how far these central banks are prepared to tighten, how quickly they will move, and what higher rates could mean for bonds, currencies and equities over the coming months.
Watch the full episode to find out more!
Intro0:44 Fed hikes
3:22 BoE to stay pat
7:33 BoJ to hike, too!
#FederalReserve #Fed #KevinWarsh #InterestRates #Inflation #BoE #BankOfEngland #BoJ #BankOfJapan #USDJPY #GBPUSD #TreasuryYields #BondMarket #Oil #WTI #CentralBanks #MonetaryPolicy #Markets #Swissquote #MarketTalk
👉 Discover our brand and philosophy: https://www.swissquote.com/en/group
👉 Deepen your trading and investing knowledge with Swissquote Inspire: explore our articles, analyses, webinars and exclusive content: https://www.swissquote.com/private/in...
👉 Discover Swissquote’s culture and join a company that values innovation, diversity and team spirit: https://www.swissquote.com/en/careers
