Possible scenario
Inflation Forces Tightening
25% Chance
A hotter inflation sequence could override Bowman’s lack-of-urgency message and revive the year-end hike signaled in the minutes. This scenario is plausible because inflation expectations have already reached their highest level since 2023.
Initial impacts
- 10-year Treasury yield Up
- Riskier companies' borrowing costs Up
- Market volatility Up
- US dollar Up
Secondary impacts
- Technology -1.0%
- Utilities -0.8%
Portfolio impact
S&P 500-0.7%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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