Bloomberg Surveillance · Tuesday, July 7, 2026
Despite a significant drop in crude oil prices, market expectations for Federal Reserve rate hikes have not adjusted, creating a disconnect noted by Deutsche Bank. This suggests the market may be misinterpreting the Fed's intentions, potentially aligning more with the Green Span era's 'jawboning' strategy.
“We've had a reset in crude prices from triple digits down to the sixties on WTI Brent in the low seventies, but we haven't reset the FED hike debate. In fact, this market is still primed for FED hikes. What's going on there and why?”
“But again in our view, the market's misreading the intention and I like it more to the Green Spanner era.”