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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
STIR FUTURES
- After sizeable increases on the day, FOMC-dated Fed Funds implied hikes start to give back some of the further increase on Powell’s interview which had been led by meetings further out into the year.
- June unchanged from 53-54bp range but July sits at 105bp (104bp prior, 102bp this time yesterday), Sept at 146bps (144bp prior, 139bp yesterday) and Dec up to 199bps (197bps prior, 189bps yesterday).
- Powell started by pulling back from last week’s interview which had left open the chances of larger than 50bp hikes, but then added that neutral rates aren’t a stopping or looking-around point and the Fed won’t hesitate to raise rates above neutral if needed.
- There’s no need for nuanced readings of inflation reports and the NAIRU is probably well above the current 3.6% unemployment rate, whilst markets are processing the FOMC’s policy thinking “pretty well”.
Source: Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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