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Fed Funds Futures Back To +90bps For 2022

STIR
  • Fed Funds futures are back to pricing in 23bps for Mar (=brief high prior to Powell on Tue) and 90bps for Dec (off 93bp high on Tue) after further Fed commentary late yesterday. To recap:
  • Brainard (permanent): Inflation fight is the Fed’s top task (in prepared remarks for today’s hearing).
  • Bullard (2022): Four interest rate rises in 2022 now appear likely.
  • Harker (2023): Sees three hikes this year and open to more if required.
  • Daly (2024): I definitely see rate increases coming, as early as March even. Fed policy in good place, not behind or ahead of curve.
  • Fedspeak ahead: Brainard hearing at 1000ET, Barkin (2024) at 1200ET and Evans (2023) at 1300ET.

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