Fed talks up the prospects of a northern summer tightening

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The past week has seen a significant rise in the implied market pricing of a 0.25% US Fed Funds Rate increase at or before the July FOMC. The immediate catalyst was the publication of the April FOMC minutes (Wednesday, 18th May) which appear to adopt a more “hawkish” tone than most assumed from the Statement issued upon the conclusion of the meeting on 27 April.

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