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Fed Rate Path Consolidates Increase Ahead Of CPI

STIR FUTURES
  • Fed Funds implied hikes overnight held yesterday’s gain, with 53bp for Dec, a cumulative 91bp to 4.74% for Feb’23, terminal 4.98% for May’23 and 4.54% Dec’23.
  • The 44bps of cuts priced from the May peak to end-23 is near the lower end of the range since Powell’s Brookings Nov 30 comments but higher end of the post Nov 2 FOMC range.

FOMC-dated Fed Funds futures implied ratesSource: Bloomberg

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