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Fed Hikes Hold Gains From Williams

STIR FUTURES
  • Hikes implied by Fed Funds futures have kept their move higher from a usually dovish NY Fed’s Williams earlier lending support to a 50bp hike as part of getting back to neutral at the 2-2.5% range.
  • Little change over the immediate meetings (49.5bps May, 95bps June) but up 10bps to 215bps through to year-end on the implications of where other FOMC members sit.
  • Still to hear from Mester (’22 voter, hawk) at 1550ET and Harker (’23) at 1800ET, both with text and Q&A. This will be the first time for Mester since the March CPI print on Tuesday.

Cumulative hikes implied by FOMC-dated Fed Funds futuresSource: Bloomberg

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