Greetings,
United States: First, the Federal Reserve hiked rates by 50bps, as expected.
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/US-FOMC2205050410.png)
Here is how real rates (TIPS yield) reacted to Powell’s comment of a 75bp increase being off the table for now.
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/US-FOMC-M-TIPS2205050410.png)
Equities: In equity markets, the P/E ratio compression has been severe in 2022 (see chart).
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/EQ-PE-compression2205050410.png)
Energy: As US refinery runs deteriorate, total refined product inventories continue to shrink.
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/EN-Product-Inveno2205050410.png)
Emerging Markets: India’s bond yields surged after the RBI unexpectedly hiked rates by 40bps this week.
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/EM-IN-5y2205050410.png)
Brazil’s central bank hiked the target rate by 100bps again, signaling that further rate increases may be smaller.
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/EM-BR-Hike2205050410.png)
Food for Thought: Lastly, let’s look at US pandemic-era unemployment programs:
![The Daily Shot Brief – May 5th, 2022](https://thedailyshot.com/wp-content/uploads/VTW-US-pandemic-unemployment-programs2205050410.png)
Edited by William Villacis
Contact the Daily Shot Editor: Brief@DailyShotResearch.com