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Fed Rate Path Nudges Higher Overnight

STIR FUTURES
  • Fed Funds implied hikes remain in the post-CPI range though: 50bps for Dec (unch), cumulative 85bp to 4.79% Feb (+0.5bp), terminal 4.93% May’23 (+2bp) and 4.46% Dec’23 (+4bp).
  • Latest from Gov. Waller yesterday: becoming more comfortable with 50bp for Dec but wants to see more data including PCE and payrolls.
  • Heavy Fedspeak schedule: Bullard (’22, text), Gov Bowman (text), Mester on financial stability (’22), Gov. Jefferson (text) and 2 x Kashkari (’23).

FOMC-dated Fed Funds implied ratesSource: Bloomberg

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