Deutsche Bank executive Tarman: Expectations for Federal Reserve rate hikes are "overblown"

 Tarman stated that the newly appointed Federal Reserve Chair, Kevin Warsh, will attempt to "persuade his colleagues to hold steady." "Now everyone is excitedly discussing the possibility that he might radically change his stance, even convincing Trump that a substantial rate hike could happen this year, which seems a bit over the top to me." "The best approach is to stay on the sidelines and let the political games in the US, the Strait of Hormuz, and even the UK play out on their own," Tarman said. Tarman pointed out that a rate hike by the European Central Bank in June seems inevitable, but whether Lagarde will raise rates again in September depends on the progress of peace talks in the Middle East. (Bloomberg)