The markets expect a 25bps rate hike by the Fed reserve tomorrow. The fastest rate hiking in the history has already started to show its effects on the economy. The 4 failed banks are just the tip of the iceberg; however Citi CEO insists that the US Banking infrastructure is quite strong and well managed and there were just a few ill managed banks. The upcoming rate hike would take the rates to record highs and is expected to be the last of the rate hikes in this cycle.
Inflation is still cooling but is proving to be a lot stickier than anticipated. The Eurozone inflation figure came in at 7% as compared to the expected 6.9%.
"The fed hikes till something breaks."
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