The Fed still rules the market
After an avalanche of macroeconomic figures published over the week and the Fed meeting in the spotlight, the financial markets yo-yoed this week. Despite the concerns expressed by the Federal Reserve about inflationary pressures, its statements were perceived as "dovish". It also ruled out any possibility of a further rate hike (indicating that the next move would be a cut), thereby limiting the potential for a rise in long-term interest rates. The signal was not very strong, however, as suggested by the very slight repricing of Fed Funds rate cuts to around 40bp over the year, with a possibl...