Fed Needs More Hawkish Tone to Quell Inflation Concerns -- Market Talk

Dow Jones05-19

0523 GMT - Even if the Federal Reserve moves to signal that it will adopt a neutral bias in June, it might not be enough to stabilize inflation expectations and long-term U.S. Treasury yields, Macquarie Group's Thierry Wizman says in a note. For the Fed to quell inflation concerns, its rhetoric must become more hawkish than what is already reflected in the slightly upward sloping OIS forward curve, which is now barely registering one rate increase in 2026, the global foreign exchange and rates strategist says. The Fed will have an opportunity to change its rhetoric decidedly toward "hawkish" with the small flurry of Fed speeches between now and June 6, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

May 19, 2026 01:23 ET (05:23 GMT)

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