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Fed Hikes Firm Further Ahead Of CPI

STIR FUTURES
  • Fed Funds implied hikes up to 48bps for May 4 and 95-96bps for Jun 15. The 222bp to year-end is up overnight but remains off previous highs of 226bp.
  • CPI at 0830ET: https://marketnews.com/mni-us-cpi-preview
  • Fedspeak: Brainard speaks at 1210ET – no text but Q&A. Her comments prior to the minutes had buoyed expectations that the Fed will shrink the balance sheet at a rapid pace as soon as May, whilst noting it was “of paramount importance to get inflation down” and that the Fed will continue to tighten policy “methodically”.

FOMC-dated Fed Funds Futures implied cumulative hikes (bps)Source: Bloomberg

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