TD Securities Questions Fed Hike Pricing Amid Oil, Tensions

TD Securities strategists Gennadiy Goldberg and Molly Brooks have commented on the recent uptick in market expectations for a Federal Reserve rate hike. They attribute the shift to higher oil prices and escalating US-Iran tensions, which have stoked inflation concerns.

However, the analysts question whether a hike in July is justified, suggesting the market may be overreacting. The full note indicates a cautious stance on near-term Fed action, implying rate expectations could reset if geopolitical pressures ease.