Daybreak Europe Show Open: Market Risks

The transcript discusses the market's need to adapt to potential Federal Reserve actions, including a possible 50 basis point hike or an intra-meeting move. James Bullard's comments highlight the importance of the Fed's nimbleness and the potential risks to credibility if an intra-meeting is called. The market is on edge, with a 30% chance of an intra-meeting hike after Bullard's speech. The discussion also touches on the role of bond and equity vigilantes in the current market environment.

In what ways is the market described as being 'on edge'?

What factors might lead the Fed to consider a hike before March?