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Pelosi in Taiwan, Fed nowhere near almost done
Global yields have surged led by the belly as Fed speakers make a co-ordinated effort to push back on the markets interpretation of Powell post FOMC. Some geopolitical risk premium has also come out of the markets with Pelso making a safe landing in Taiwan. Mary Daly led the charge by the Fed, stating the Fed is “nowhere near almost done”, followed by Evans who said for the September FOMC “50 is a reasonable assessment, but 75 could also be okay”. Importantly in Evan’s view rates needed to go to “a sufficiently high level ” of 3.75% to 4% by Q2 2023. The end result is yields are broadly where they were ... (full story)