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Evans Pushes Back On 75bp Hike

  • Chicago Fed's Evans ('23 voter) has unsurprisingly pushed back when asked about the prospect for a 75bp hike, broached by St Louis Fed's Bullard yesterday (although not Bullard's baseline either), saying he doesn't see any need for moving in larger than 50bp clips.
  • Instead, he indicated he prefers two 50bp hikes, not surprising either considering he has indicated he wants to see the Fed Funds target range at 2.25-2.5% at the end of this year, requiring 200bps of hikes over the coming six meetings.
  • The more notable comments came earlier, saying he expects the target range to go above neutral in 2023, when he's a voter, but that it's too far away to have conviction.
  • FOMC-dated Fed Funds futures sit at 49.5bps for May, 98bps for June and 224bps to year-end, the latter seeing an almost 10bp increase on the day.

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