MUFG June FOMC Preview: Expect more hawkish signals as inflation risks linger: The MUFG Global Markets Podcast

In today’s episode, MUFG Head of U.S. Macro Strategy George Goncalves discusses his FOMC preview for the upcoming June meeting. George expects more hawkish signals from the Fed as they continue their fight against persistently high inflation. This will likely come about with the first 75bp hike since the 1994 hiking cycle, as well as a meaningful jump higher in the rates dot plot. The risk of the Fed introducing a balance-sheet unwind facility to make the QT caps whole is also lurking in the wings. On the dovish side, it would be odd if the Fed does not do 75bps, but that is a risk as is the risk they highlight recent market vol. 

Disclaimer: www.mufgresearch.com (PDF)