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Fed Rates Nudge Lower, Williams To Reiterate Rate Cut Pushback?

STIR
  • Fed Funds implied rates for 2024 meetings have nudged up to 2bps lower overnight in an extension of yesterday’s move.
  • Pertinent cumulative cut pricing: 17.5bp for March, 64bp for June and 125bp for Nov and 140bp for year-end. The latter is 5bps below levels shortly before Friday’s NFP report despite the net hawkish report.
  • NY Fed’s Williams (voter) speaks late on at 1515ET on the economic outlook, including text and with both moderated and media Q&A. It will mark his first public remarks since leading the charge shortly after the Dec FOMC decision in noting the market is reacting more strongly than the forecasts show and that it’s “premature” to be thinking about a March rate cut.

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