Debt-limit talks, interest rate peaksin June, is the market overly optimistic?
@MaverickWealthBuilder:
On a macro level, there were two major events in the past week that gave investors further confidence. Firstly, the market believes that the Fed will pause its rate hikes in June and has received corresponding information from FOMC members. Powell's dovish stance is based on credit tightening caused by the banking crisis, which has to some extent already had a contractionary effect, thus supporting expectations of lower peak interest rates than previously anticipated. As a result, the market reacted strongly with US bond yields rising and USD exchange rates strengthening.However, pausing rate hikes in June does not mean they will stop altogether as other officials have expressed support for continuing them. Atlanta Fed President Bostic stated that inflation may be more sticky than what mar