Goldman Trader: Central Banks Appear Willing To Break Some Things

By Tony Pasquariello, head of hedge fund sales at Goldman Sachs

Ahead of this week’s FOMC meeting -- and, alongside a blistering CPI print -- global central banks stole the show. 50bps hikes from both the RBA and the RBI were mere calisthenics for the ECB, which put a knife in European assets following the reveal of a more protracted hiking cycle.

In turn, our European economics team now expects the following profile of hikes: 25 in July,  50 in both September and October, then 25 in December, February, March and June ... taking you to a 1.75% terminal rate a year from now (link).