Market In Review 07/2022

Man working at laptop in nature

The USA inflation numbers printed the highest in 40 years at 7.5%, which the market took as a near certainty of a rate rise. This was reinforced by the US Fed member Bullard voicing extremely hawkish comments later that day. The odds of a rate rise of 50 basis points at the next Fed meeting shot up to 70%. The market was even pricing in a 25% chance of a 25 bp move before the next Fed meeting in March, a chance this week in fact.