3min chapter

Forward Guidance cover image

The Debt Ceiling Approaches | Joseph Wang & Dominique Dwor-Frecaut

Forward Guidance

CHAPTER

The Fed's Volatility and the Crisis

The market is now pricing a full 25 basis point hike between June and July. In my view, given what is happening with the data, the risk goes to hike in June. The crisis could actually turn inflationary because where we are in the cycle, we need more policy tightening. And I expect that when the standoff gets resolved, it will get resolved in a fairly short order so that it will not leave lasting impact on the economy.

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