Possible scenario
Sharper Hawkish Surprise
16% Chance
Inflation data or Fed communications make the first tightening step appear larger or more abrupt than investors expected. This is less likely than a routine quarter-point move but would produce a more meaningful cross-asset reaction because markets would reassess the full policy path.
Initial impacts
- Fed policy rate Up
- Riskier companies' borrowing costs Up
- 10-year Treasury yield Up
- Market volatility Up
- Bitcoin Down
- US dollar Up
Secondary impacts
Portfolio impact
S&P 500-1.5%
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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