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Five Things You Need to Know to Start Your Day

The 5-to-10-year yield curve inverted in the wake of the Fed

A hawkish message from the Fed, Russia’s bonds, and China’s Covid plan.

The Federal Reserve raised interest rates for the first time since 2018 and outlined a plan to hike six more times this year, sparking recession fears. Even so, it doesn't expect inflation to decelerate toward 2% for at least a couple of years. And remember all the bonds it's been buying during the downturn? It plans to reduce its balance sheet containing all those assets, but hasn't set a firm plan yet. Meanwhile, the Bank of England is widely expected to raise its own benchmark when it meets today. With retail-price inflation in the U.K. running at almost 8%, the monetary authority still has a long way to go.