The First Strike At High And Persistent Inflation
The Fed’s dot plot indicates six hikes totalling 175bp for the remainder of this year,
including one hike of 50bp. The plan to downsize the Fed’s balance sheet will be
unveiled during the next FOMC meeting on 3-4 May 22. Tighter monetary policy and
higher interest rates are positive for banks. However, the outcome of the RussiaUkraine war remains uncertain. BUY DBS (Target: S$38.15) and OCBC (Target: S$15.00)
for 2022 dividend yield of 4.1% and 4.7% respectively. Maintain OVERWEIGHT.