Financial markets went a little wild in the past week, after the Federal Reserve on Wednesday delivered an unexpected message.

Policy makers penciled in two interest rate increases by the end of 2023 and began talking about the eventual need to slow down the central bank’s monthly asset purchases.

Read: Barclays moves up expectations for Fed tapering after FOMC meeting

But a reading of the reaction across financial markets may be signaling that investors don’t think the Federal Reserve will have room to raise rates very far once the hiking cycle begins, argued George Saravelos, currency strategist at Deutsche Bank, in a Friday note.

But first, how wild was Thursday’s session?

  • The ICE U.S. Dollar Index DXY saw its biggest one-day jump since the March 2020 pandemic forced a global scramble for greenbacks as the economy shut down.

  • Long-term Treasury yields tumbled to…

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