3 Things You Need to Know This Week | Monetary Policy, EZ Sentiment, Global Trade (June 15, 2026)

The episode opens with a focus on monetary policy, noting that both the US Federal Reserve and the Bank of England are holding policy meetings this week. The primary focus is on the Fed, as newly appointed chair Kevin Warsh — who officially took over from Jerome Powell on May 14th — faces his first FOMC meeting on June 16th-17th. The FOMC, a 12-member body that includes former chair Jerome Powell, sets US monetary policy collectively. Both central banks are navigating an environment where US consumer prices have risen due to an ongoing conflict in Iran, while UK inflation has remained more stable but fears of resurgence persist given the UK's high inflation experience in 2022-2023. Neither bank is expected to announce rate changes, but the meetings will signal the direction of monetary policy for the rest of the year. Fisher Investments argues that stocks do not require rate cuts or hikes to continue rising, and that the greater risk is a monetary policy error such as hiking too fast or inverting the yield curve.

The second topic addresses eurozone economic sentiment, with fresh data expected on Tuesday. Sentiment turned negative in March, April, and May following the outbreak of the Iran war, though May's reading beat expectations and suggested some improvement. Fisher Investments cautions against conflating sentiment with economic reality, arguing that markets thrive on the gap between expectations and reality. When investors are pessimistic and expect things to worsen, there is greater potential for upside surprises — which they describe as a bullish signal, especially given that global stocks have recently hit new all-time highs.

The third segment covers global trade, highlighting updated trade data due from the Eurozone and Japan. Despite widespread concern over tariffs, net new global trade outside the US has grown steadily since early 2025. Fisher Investments characterizes this as an underappreciated positive that has received little media attention. They cite several examples of expanding trade cooperation: the EU signing deals with India and Latin America, China and Canada agreeing to cut tariffs on electric vehicle imports, and new agreements involving the UK, Japan, and Australia. With more deals expected through 2026, the firm believes this quiet improvement in the global trade story supports market growth and positions global stocks for further positive surprise.