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Fed Hikes Buoyed By 50bps At ‘Several’ Meetings

STIR FUTURES
  • Hikes implied by FOMC-dated Fed Funds have given back some of the yesterday’s rise but remain up solidly from Friday’s close as the US comes back in.
  • The rise has been supported by Shanghai and Beijing easing some Covid restrictions, along with Waller (voter) yesterday opting for a more hawkish tone with support for 50bp hikes at ‘several’ meetings, upping what has been widespread FOMC support for 50bp clips at the next ‘couple’ meetings.
  • They sit with 51.5bps for Jun before a cumulative 100bps for Jul (+2.5bps from late Fri), 137bps for Sep (+5bp) and 188bps to year-end (+7bps).
  • Not the usual Fedspeak but Powell meets President Biden in the White House at 1315ET, with Yellen seemingly set to join as well, following Biden’s inflation plan in his WSJ op-ed.

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