January 19, 2023 18:58 GMT
Brainard Helps Pause Day's Increase In Terminal Expectations
- In her first appearance since late Nov, dovish remarks from Brainard help pause/very slightly trim the day’s increase in terminal rate expectations.
- FOMC-dated OIS implies 4.88-4.89% (+3bp on the day) seen largely tied between the May and June meetings, the bringing forward to May helped by weak data yesterday.
- Q&A: Fed policy is now in restrictive territory and now balancing risks on both sides.
- Still ongoing but next Fedspeak comes late from an also typically dovish Williams (1835ET).
FOMC-dated OIS implied rate for June meetingSource: Bloomberg