Free Trial

Fed Hikes Firm Further, Powell Ahead

STIR FUTURES
  • Hikes implied by Fed Funds futures have increased further following Friday’s slew of Fedspeak.
  • FOMC-dated Fed Funds have 38bps for the next meeting in May, 104bps over the three meetings including July and 171bps for Dec, i.e. close to the 2.00-2.25% range by year-end.
  • To recap from Fri: Bullard (2022 voter) looks for rates of 3.00-3.25% by end-2022, Waller (permanent) is looking for 225-250bp of hikes this year and Kashkari (2023) appears no longer the most dovish with 175bp of hikes in 2022. Barkin (2024) was on the relatively softer side and could be 1 of 5 dots eyeing 175bp in 2022 or even 1 of 4 below 175bps judging by patience to hit neutral.
  • Both Powell and Bostic speak later with text and moderated Q&A.

To read the full story

Close

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.