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Fed Rate Path Sees 2023 Cuts Reduced From ~100bps To 67bps

STIR FUTURES
  • Fed Funds implied hikes have seen significant volatility overnight but have on net bounced from yesterday’s lows to show 18bp for next week’s FOMC (+5bp) and now fully price in one more hike (31bp for May, +12bps).
  • That 4.89% for May marks the peak followed by 67bp of cuts to 4.22% at year-end in a partial reversal from yesterday’s slump to -101bps of cuts priced.


FOMC-dated Fed Funds futures implied rates for specific meetingsSource: Bloomberg

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