fx crosses

The markets were crushed, and especially bonds, as a hotter than expected CPI and hawkish comments from Bullard weighed heavily on the markets. The 7.5% y/y pace of CPI, a 40-year high, boosted concerns that the FOMC will have to take a more aggressive stance on rate hikes and tightening down the road. But the nail in the coffin were comments from the Fed hawk Bullard who said he now advocated for a half point rate increase in March and 100 bps of tightening over the first half of the year.…