Fed Hawkish Pivot: Quarterly Hikes Return, 2025 Insurance Cuts Removed
The Federal Reserve is reported to be returning to a quarterly rate-hike cadence and scrapping the 'insurance cut' framing, a hawkish signal pressuring risk assets.
What we know
An account on X cited the FT reporting the Fed will stick with quarterly rate increases after removing the 2025 insurance-cut posture. This comes as Sweden's PPI surged to 11.2% YoY (vs 6.8% prior) — a significant inflationary surprise that adds to global rate-hike pressure. Japan's 5-year JGB yield also ticked up to 2.23%, while gold holds above $4,000 despite rate-hike headwinds. The FT separately warns junk borrowers are stuck between a $2tn refinancing wall and a hard place.
How the story developed
The Federal Reserve is reported to be returning to a quarterly rate-hike cadence and scrapping the 'insurance cut' framing, a hawkish signal pressuring risk assets.
The Federal Reserve is expected to keep rates unchanged in the days immediately before US midterm elections, per market expectations.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.