Inflation pressures will remain high with the rise in commodity markets from the war.

The focus of investors will shift from the war in Ukraine to the domestic monetary policy changes at least for one day. The FOMC meets this Tuesday and Wednesday and is expected to raise the target rate for Fed Funds by 25 basis points. This increase is already priced in the bond market. The more important news will be the results of the quarterly dot matrix forecasts of Fed members which is tied to the guidance going forward. Currently, investors believe the Fed will go slow in raising managed rates given the uncertainty driven by the war in Ukraine. That outlook means the Fed is expected to go slower in raising managed rates than otherwise would have been the case.