Rising Oil Prices Boost Risk of Hawkish Fed Surprise
Dow Jones07-22 13:35
0535 GMT - The renewed escalation in the Middle East fighting has pushed crude oil to five-week highs. That has seen the U.S. rates market almost fully retrace the dovish repricing that followed last week's softer inflation numbers, says Tony Sycamore, market strategist at IG Markets. Oil's unrelenting rise is increasing the chances of a hawkish Fed surprise next week, he adds. Markets are now pricing in around 50 basis points of Fed rate hikes by April 2027, including a roughly 25% chance of a 25 basis-point increase next week, he says. (james.glynn@wsj.com; @JamesGlynnWSJ)
(END) Dow Jones Newswires
July 22, 2026 01:35 ET (05:35 GMT)
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