• As far as US investors are concerned, the Federal Reserve needs an even bigger dove as Chair. With JPow resolutely sticking to his easing plans despite an economy that probably returned to its pre-pandemic level by the end of this month, investors want more.
  • We now see a nice further tightening of US financial conditions, with the S&P 500 almost flat for the year, the dollar extending its YTD gains against the majors to 2% and to 2.6% against EM FX; with the Nasdaq in correction territory (down 10% from the high), and the 10y real yield having almost erased half of its pandemic-induced decline:

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