WS #16630
Federal Reserve Governor Michelle Logan stated that the FOMC needs to implement at least two more 25-basis-point rate increases, contradicting market expectations for a pause. This hawkish stance is bearish for growth stocks and REITs but bullish for the US dollar and financials. In response, bonds are rallying, with the 10-year Treasury (ZN) seeing significant institutional buying as investors seek safety and price in a higher-for-longer rate environment.
Hawkish Fed and Macro Rates
Federal Reserve Governor Michelle Logan stated that the FOMC needs to implement at least two more 25-basis-point rate increases, contradicting market expectations for a pause. This hawkish stance is bearish for growth stocks and REITs but bullish for the US dollar and financials. In response, bonds are rallying, with the 10-year Treasury (ZN) seeing significant institutional buying as investors seek safety and price in a higher-for-longer rate environment.