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Fed Path Holding Last Week’s Substantial Push Higher For 2H23

STIR FUTURES
  • Fed Funds implied hikes are near unchanged overnight after last week saw the Dec’23 implied rate rise 30bps since Friday’s post-payrolls close and ~50bp pre-payrolls.
  • 26bp for Mar, cumulative 46bp for May, 61bp to a terminal 5.19% for Jul before cutting 27bps to 4.92% by year-end, the latter only sustainably moving above the expected March rate for the first time this cycle on Friday.
  • Gov. Bowman speaks on banking supervision 0800ET including text. She last spoke Jan 10 wanting to see compelling signs that inflation has peaked and is on a downward path.

Source: Bloomberg

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