Higher for longer Fed already priced in
• Expectations matter. US Fed failed to live up to the markets “hawkish” thinking. Rates set to stay higher for longer, but this was already priced.• Yields adjust. Fed Chair Powell doesn’t see more hikes. US yields slipped back & the USD softened. AUD recovered ~1/2 of yesterday’s fall.• JPY swings. Another sharp jump in the JPY caught the markets eye after the Fed. US jobs report (Friday night) the next major market event. The US Fed meeting was in focus this morning. As per our thoughts outlined over the past week the Fed failed to live up to very...