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Fed Rate Path Holds Near Lower End Of Post-FOMC Range

STIR FUTURES
  • Fed Funds implied hikes slowly reverse yesterday’s dip: 57bp for Dec (+1bp), 96bp to 4.81% for Feb (+0.5bp), terminal 5.11% Jun’23 (2.5bp) and 4.80% for Dec’23 (+2.5bp).
  • Ahead, Barkin (’24) follows Mon remarks at 1100ET with Kashkari (’23) discussing inflation late at 2000ET.
  • Earlier, NY Fed’s Williams noted that long-term inflation expectations remain well anchored with a surprising wrinkle where a similar share of consumers expect deflation 5yrs out as those expecting >4%. More here: https://marketnews.com/long-term-deflation-expectations-rising

FOMC-dated Fed Funds implied ratesSource: Bloomberg

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