Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
FED
Atlanta Fed Pres Bostic (a non-voter this year), per our Policy Team's writeup of a call he held with reporters this morning, is now in line with the September FOMC meeting's Dot Plot rate median for this year - but as we noted earlier today, his current stance compares much more hawkishly to last month where he summed it up as: "restrictive is somewhere in the 3.5 – 3.75% range. I’m hopeful that we can get there by the end of the year.”
- Bostic now finds himself in line with the median 4.4% dot, and one of 9 (among 19 total) eyeing that rate, vs 8 who saw 4.1%, i.e. 125bp of hikes in Nov and Dec. See current Dot Plot below.
- That's a little surprising given that he was seen as one of the more dovish FOMC members this summer.
- Then again, it may just underline how finely poised the Dot Plot was - 8 members saw 4.1% (100bp of further 2022 hikes).
- The fine split between 4.1% and 4.4% shows that it's very much a split decision at this stage - two 75bps are only the base case of one member. The next two meetings thus remain up in the air and decisions will very much be data-dependent.
- End-2022 implied rates are currently priced at 4.21%, likewise splitting the difference.
Source: Federal Reserve September 2022 FOMC Dot Plot
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok