Inflation risk has been the dominant theme over the past two weeks, with market sentiment increasingly shaped by rising geopolitical tensions and a growing realization that the current energy shock may prove more persistent than initially expected. As a result, policymakers are focusing more on anchoring inflation expectations, even as the growth outlook becomes more fragile. Just one month ago, US, Canadian, and European markets were pricing varying degrees of rate cuts; however, those expectations have shifted sharply, with energy-importing regions like Europe now pricing in as many as 2.6x rate hikes vs. a -0.3x cut only two weeks ago.