BIG NUMBER 3.73%

Investors have shifted from expecting Fed rate cuts this year to a 'higher for longer' outlook as inflation fears have risen, reducing the probability of Fed easing in 2024. That repricing supports higher yields and increases downside pressure and volatility for risk assets (equities) and fixed-income markets.

Analysis

Investors have shifted from expecting Fed rate cuts this year to a 'higher for longer' outlook as inflation fears have risen, reducing the probability of Fed easing in 2024. That repricing supports higher yields and increases downside pressure and volatility for risk assets (equities) and fixed-income markets.