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Fed Implied Rates Consolidate Yesterday’s Trimming Of Cuts

  • One day out from the FOMC decision, the Fed Funds implied rate path is near unchanged overnight after yesterday’s trimming of 2024 rate cuts. Yesterday’s drivers help set the tone with the US service PMI showing resilient prices whilst its weaker than expected activity was offset by China stimulus hopes.
  • Cumulative hikes from 5.08% effective: 24.5bp for tomorrow (unch), +28.5bp Sep (unch), +34.5bp Nov (-0.5bp).
  • Cuts from Nov terminal: 3bp to Dec’23, 56bp to Jun’24 and 127bp to Dec’24.

Source: Bloomberg

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