Greetings,
United States: With employment costs rising quickly, the chances of the FOMC boosting rates by 50 bps rather than 25 bps in March hit 23%.
A 125 bps total rate increase this year (five 25 bps hikes) is now almost a certainty, according to the fed funds futures market.
China: The renminbi has been weaker in recent days as the Fed turns increasingly hawkish.
Emerging Markets: We should expect more yield curves to invert as rate hikes continue.
Energy: Brent crude is trading above $91/bbl.
Backwardation hit a multi-year high.
Equities: Volatility is at the highest level since April of 2020.
Food for Thought: US households’ excess savings by income bracket:
Edited by Daniel Moskovits
Contact the Daily Shot Editor: Editor@DailyShotLetter.com
