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Fed Rate Path Continues Trend Move Higher

STIR FUTURES
  • Fed Funds implied rates have held onto a move higher at the open and despite some retracement from earlier highs are still at Friday’s high pre core PCE miss with a 15bp hike priced for May (+2bp) from the current effective 4.83%.
  • The first cut from current levels is seen in Sep with -12.5bp at 4.71% (+3.5bp) and 42bp of cuts to 4.41% in Dec (+6.5bp).
  • Gov. Cook speaks late at 1615ET in a moderated discussion on mon pol. She last spoke Fri – weighing stronger momentum against potential headwinds, with banking turmoil having potential to tighten credit [and lower the rate path].


FOMC-dated Fed Funds implied ratesSource: Bloomberg

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