Wael Al-Mutlaq, head of research at Rain Financial, said that financial markets have notably repriced their expectations for the US monetary policy path, with rising probabilities of an interest rate hike, following growing expectations that Kevin Warsh will take over the chairmanship of the Federal Reserve.

Al-Mutlaq explained in an interview with Al Arabiya Business that markets are now pricing in a probability exceeding 30% for an interest rate hike at the July meeting, while these expectations rise to over 70% by the end of the year, reflecting a clear shift in investors' view of US monetary policy.

He pointed out that recent labor market data came in below expectations, but markets did not give it much weight due to notes regarding its calculation methodology, while the decline in the unemployment rate to better-than-expected levels strengthened the bet on continued Fed tightening.

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