Latest Market Alert | 7 July 2026
Executive Summary
Federal Reserve Governor Christopher Waller has said the main risk facing the Fed is now high inflation, given a stable labour market. Markets are watching upcoming inflation data closely ahead of the July policy meeting.
Why it matters
Higher-for-longer US rates would affect global borrowing costs, dollar funding, private credit appetite and risk pricing.
UK impact
UK borrowers with dollar exposure, refinancing needs or US-linked investors may face continued pressure on funding assumptions.
Global impact
A more hawkish Fed could tighten financial conditions across emerging markets, leveraged borrowers and growth sectors.
Our View
Businesses should not plan around imminent rate relief. Refinancing risk, currency exposure and lender appetite should remain central to second-half planning.
Risk Indicator: MEDIUM/HIGH
Disclaimer
This market alert is provided for general information purposes only and does not constitute financial, legal, insurance or investment advice. Readers should obtain independent professional advice before making any commercial or investment decisions.