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Joseph Wang: Markets now price in nearly four rate hikes after shifting expectations

Joseph Wang: Markets now price in nearly four rate hikes after shifting expectations
Markets now price in four hikes

Joseph Wang, macro analyst / blogger at Fed Guy, observes that the market is not only solidifying its expectation of an interest rate hike in September but is also now pricing in a more aggressive rate hike cycle totaling almost four hikes.

This is a notable shift from just last week, when the market had been pricing in only two hikes.

Wang recently said that AI-related debt is not displacing U.S. Treasuries, with dealer holdings and swap spreads remaining stable. He has also questioned whether the Federal Reserve’s third mandate on long-term interest rates involves input from the White House. His earlier commentary focused on policy drivers behind moves in U.S. rates and Treasury markets.

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