Macquarie Strategist Calls for More Hawkish Fed Language to Tame Inflation Concerns

According to Jin10, on May 19, Macquarie Group’s global FX and rates strategist Thierry Wizman stated in a report that even if the Federal Reserve signals a shift toward a neutral stance in June, it may be insufficient to stabilize inflation expectations and long-term U.S. Treasury yields. Wizman indicated that current overnight index swap forward curves reflect only one rate hike for 2026, and the Fed’s rhetoric must be more hawkish than levels already priced in to ease inflation concerns. He noted the Fed has a series of speaking engagements before June 6, providing an opportunity to shift its messaging decisively to a hawkish tone.