September 13, 2023 10:12 GMT
Fed Path Sees Less Than 100bp of Cuts In 2024 Ahead Of US CPI
- Fed Funds implied rates are little changed after limited spillover from a hawkish ECB sources piece from Reuters late yesterday. It consolidates yesterday’s main change being a further trimming of 2024 cuts ahead of today’s US CPI print.
- Cumulative hikes from 5.33% effective: +1.5bp Sep, +11bp Nov, +12bp Dec to terminal 5.45%.
- Cuts from terminal: 32bp to Jun’24 and 96bp to Dec’24. The SFRU3/Z4 spread shows a similar reading, for its least inverted since mid-March in the initial regional banking fallout otherwise at levels last seen in Nov 2022.