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Surveillance: Oil Demand with Morse

Bloomberg Surveillance

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Is the Fed Going Ahead With a Rate Hiking Cycle?

The two year yields right now is actually inverted to what the market expects the fed funds rate to be in just three months time. So we're trying to understand how much pain tey 're willing to tolerate, how far they're wating to push it and what business the two year has at two 82. It's not yet im for the fed to assay that they've accomplished their miss mission. Even with inflation expectations in the market declining, we do expect that the fed will hih rate 75 basis points In july. We expect them to hike another 50. And by the way  the market is not even pricing in a full rate hike for december.

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