We will see a host of Fed speakers this week – and expect them to be generally hawkish to try and dampen markets.

Markets have been buoyed by improving inflation data – and the Fed is concerned that a market rally could undo part of the impact of their rate rises on inflation. This was evident in the FOMC’s minutes released last week.

For issuers, this battle might create good opportunities over the coming weeks to issue – if they can tap periods in which markets take the lead.

In the next few months, it seems likely that the Fed will be able to double down if needed and dampen markets. Also from last week’s FOMC minutes, it was evident that the Fed is currently far more concerned about the risk of doing too little and inflation not being controlled, rather than doing too much and creating a deeper recession.