Macquarie: The Federal Reserve needs more hawkish language to quell inflation concerns

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ME News Report, May 19 (UTC+8), Macquarie Group's Global Foreign Exchange and Interest Rate Strategist Thierry Wizman stated in a report that even if the Federal Reserve takes action implying a shift to a neutral stance in June, it may not be enough to stabilize inflation expectations and long-term U.S. Treasury yields. He pointed out that the currently slightly upward-sloping overnight index swap forward curve only reflects a rate hike in 2026, and to calm inflation concerns, the Fed's language must be more hawkish than what the curve already indicates. He said that from now until June 6, the Fed will have a series of small speeches, during which there will be opportunities to shift its language decisively toward "hawkish." (Source: Jin10)
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