“Panic”: Yields Soar After WSJ “Fed Leaker” Says Odds Rising Of 75bps Rate Hike

• “Panic”: Yields Soar After WSJ “Fed Leaker” Says Odds Rising Of 75bps Rate Hike
  by Tyler Durden, https://www.zerohedge.com/
  Up until this afternoon, while several banks – most notably Barclays, Jefferies and Nomura – were speculating that 75bps (or even 100bps) of rate hikes on Wednesday was possible, they were also viewed as unlikely because – as Standard Chartered’s Steven Englander said earlier – this is “not a Fed that likes to surprise“, while SGH Macro Advisors Fed watcher Ted Duy said, “The Fed has locked in 50-bp moves the for June and July meetings. A break with this near-term predictability “repudiates the Fed’s entire strategy.” It would sound like panic.” Guy continued:
  –
  The Fed prefers using aggressive forward guidance, instead of surprise or super-sized rate hikes. The Fed can do more to accelerate policy tightening by adding in more rate hikes and a higher terminal rate in this cycle, than with just a 75bphike this week. Larger increments — especially if they come sporadically — might undermine the Fed’s efforts to push rates sustainably higher by risking a “market accident”
  –
  Well, panic it may be, because moments ago, the WSJ’s in-house Fed leaker whisperer, Nick Timiraos, who has repeatedly been used by the Fed to strategically leak key guidance to the market, just unleashed hell when he warned that the “string of troubling inflation reports in recent days is likely to lead Federal Reserve officials to consider surprising markets with a larger-than-expected 0.75-percentage-point interest rate increase at their meeting this week.” He went on:
  –
  read more.

end