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Fed Hike Path Consolidates Friday's Push Higher

  • Fed Funds implied hikes for next week’s FOMC have held around 72.5bps overnight (unchg).
  • Mild easing further out with 3.87% for Dec (-1bp), a terminal 3.99% for Mar’23 (-2bp) before 42bps of cuts to 3.57% in Dec’23 (-5bps) after Friday's push high from Waller in particular - chart.
  • Fed now in media blackout with data focus tomorrow’s CPI for Aug – preview to follow later.

FOMC-dated Fed Funds futures implied Sept hike (white) and rates at specific meetings thereafter (bottom panel)Source: Bloomberg

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