Yesterday’s release of Federal Reserve minutes for the July FOMC meeting reaffirms that the central bank won’t ease off on interest-rate hikes until inflation is tamed. Good thing, too, since the latest inflation data suggests there’s still a long road ahead before policy goals and pricing pressures are aligned. But the Treasury market is always looking ahead and at the moment it seems to be hinting at the possibility that hawkish monetary policy may be close to peaking, based on comparing the 2-year yield with effective Fed funds rate (EFF).
Daily Archives: August 18, 2022
Macro Briefing: 18 August 2022
* US government will hold trade talks with Taiwan to counter China
* Renewed Iran nuclear deal appears “closer than we’ve been before”
* Fed minutes: rate hikes will continue until inflation slows substantially
* Nearly 3/4 of US farmers say drought is damaging their harvests
* Europe’s summer heat is exacerbating energy challenges
* China deploys cloud seeding to ease toll from record heat wave
* Mortgage boycotts spread across China
* US retail sales were flat in July but spending ex-gas and autos is still solid:
