What if Fed hawkish surprise drives a dollar wrecking-ball across EM?
An unexpectedly hawkish Fed lifts the dollar and real yields, tightening global conditions and pressuring EM currencies and risk in a classic dollar-up, risk-off impulse.
Every number ships with its receipt — the odds, the range, the precedents, and a public grade at Reality Check. The statistical machinery that produces it is proprietary.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (electric blue) over time vs the market's (Polymarket, amber), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. Loading the probability audit trail…
What it would mean
If this plays out, it is a risk-off shock. An unexpectedly hawkish Fed lifts the dollar and real yields, tightening global conditions and pressuring EM currencies and risk in a classic dollar-up, risk-off impulse. The trigger decomposes into signed root‑shocks — US dollar (DXY) ▲ · EM currencies ▼ · Fed policy path ▲ · Real yields ▲ · Risk appetite ▼ — which propagate through our causal graph to the markets below.