United States: First, the Federal Reserve hiked rates by 50bps, as expected.
Here is how real rates (TIPS yield) reacted to Powell’s comment of a 75bp increase being off the table for now.
Equities: In equity markets, the P/E ratio compression has been severe in 2022 (see chart).
Energy: As US refinery runs deteriorate, total refined product inventories continue to shrink.
Emerging Markets: India’s bond yields surged after the RBI unexpectedly hiked rates by 40bps this week.
Brazil’s central bank hiked the target rate by 100bps again, signaling that further rate increases may be smaller.
Food for Thought: Lastly, let’s look at US pandemic-era unemployment programs:
Edited by William Villacis
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