Paulson says current Fed policy appropriate but markets right to price in hikes

More from Fed's Paulson, says risks are super-elevated and hike on table if growth surges

Fed's Barkin: Current policy is in a good place to respond to ongoing shocks

Fed's Kashkari says far too soon to predict what the next policy move should be

Feds Collins:It’s possible the Fed will need to hike rates to cool inflation pressures

The desk interprets recent comments from Fed Governor Susan Collins as indicative of a more hawkish stance regarding interest rates, emphasizing the need for sustained restrictive policy to combat persistent inflation pressures. Per the full note [source], Collins highlighted that the Fed may need to hike rates further to achieve its 2% inflation target, particularly in light of ongoing geopolitical tensions that could exacerbate inflation. This aligns with our view that the Fed is unlikely to pivot towards rate cuts in the near term, despite hopes for easing later this year. The broader market consensus appears to be split, with some firms anticipating a more dovish approach as inflationary pressures potentially cool in the coming months.