Fed's Hammack says multiple rate hikes may be needed to tame inflation

Impact · against what's priced in

The Fed's hawkish lean, exemplified by President Hammack's call for multiple rate hikes, creates a headwinds for valuations and borrowing costs across the board. For JPM, while higher rates can benefit net interest margins, the immediate signal of systemic tightening and concerns over money velocity are marginally negative.

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In context

The call for multiple rate hikes to tame inflation increases the risk of higher borrowing costs and economic restraint, while the firm's own strategist expressed concern over the volume of money currently churning through the economy.

Read from the article alone

• rates
• fed
• inflation
• JPM
• central bank
• cpi
• monetary policy
• pce

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