Branch2 Intelligence
A ‘few’ Fed officials said there was a case for a rate hike in June, minutes from Warsh’s first meeting show
Key takeaway
Fed minutes reveal a few officials favored a rate hike in June, signaling a hawkish tilt.
- Step 11st-order: Fed minutes reveal hawkish lean, lifting US term premium and short-rate expectations.
- Step 22nd-order: Higher US yields transmit to UK gilt yields via cointegrated bond markets, raising SME borrowing costs.
- Step 33rd-order: Tighter financial conditions dampen UK consumer and business demand, hitting SME revenues.
Source: MarketWatch
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