Breakfast Briefing | 18 June 2026 | Fed Signals Rate Hikes Ahead

The US Federal Reserve has shifted its stance. After holding its policy rate at 3.50% to 3.75% for a fourth consecutive meeting, it removed its easing bias and signalled the next move will be a hike. That marks a clear change in direction, and markets responded immediately.Today's key developments:● The Fed lifted its core inflation forecast to 3.3% by year end and dropped its easing bias● Wall Street fell, with the S&P 500 down 1.2% and the Nasdaq down 1.3%● Bond yields rose, with the US 10-year Treasury at 4.49% and the Australian 10-year at 4.77%● US crude stocks fell 8.3 million barrels, the sharpest draw in eight weeks, leaving strategic reserves at a 40-year low● Oil climbed, with US crude near USD 76.50/bbl and Brent near USD 79/bbl● Japan exports rose 17% and Singapore exports surged 38% to a record high, pointing to healthy global tradeFor Australia, a more hawkish Fed widens the rate gap and adds pressure on the Aussie dollar, now steady at 70.7 USc. A softer currency raises the cost of imported goods and fuel, which feeds into local inflation and the RBA's outlook.Full report with source links: https://www.interest.com.au/economy/721/us-walks-away-hormuz-worse-position-us-fed-shifts-hiking-bias-us-crude-oil-stocks-dive#BreakfastBriefing #RBA #InterestRates #AustralianEconomy #interestcomau #FederalReserve #MonetaryPolicy #OilPrices #GlobalTrade #Markets