Ben and Dominique examine the FOMC’s updated growth outlook and policy stance following the recent Fed meeting. They analyse the resilience in household spending alongside recent supply shocks, with Dominique framing the Fed’s actions as a policy recalibration rather than a full-fledged tightening cycle. While financial markets priced in three rate hikes following Chair Walsh’s presser on disinflation concerns, attention shifts to whether headline energy pressures will lead to broader second-round effects. Dominique argues that market expectations are overly hawkish, pointing to slowing wage growth and weak worker bargaining power to project a limit of two hikes.
(This market commentary has been prepared by Macro Hive Limited (“Macro Hive”). This market commentary is made available to you for general information purposes only and does not constitute a recommendation of any investment product, to act, or not to act, in any way whatsoever and does not represent an offer or the solicitation of an offer to buy or sell any securities, financial products or related financial services or to adopt an investment strategy. The market commentary is provided on an ‘as is’ and ‘as available’ basis. To the fullest extent permitted by applicable law, Macro Hive excludes all representations or warranties of any kind, including any implied warranty of merchantability, satisfactory quality or fitness for a particular purpose. Macro Hive excludes all liability for any losses (whether direct or indirect) that may be suffered as a result of reliance on this market commentary. The contents of this publication are confidential. Macro Hive retains all ownership, title, rights and interest in the market commentary. You must not copy or redistribute any part of this market commentary (in whole or in part) to any other person without the express written authority of Macro Hive. Although information in this market commentary has been obtained from sources believed to be reliable, Macro Hive does not represent or warrant the suitability, accuracy or completeness of the material and such information may be incomplete and/or condensed. Any rights existing in such information shall remain the property of the source. Macro Hive has no obligation to update or correct any information. If markets or performance are discussed, past performance is not a reliable indicator of future results, and forwardlooking statements involve risks and uncertainties. In the event that you are a US person (as defined by the SEC or CFTC) this message is sent by Macro Hive Markets, a trading division of GFI Securities Limited and is also subject to the disclaimers available here: Sales – GFI Group)
