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Fed Terminal Seen Little Under 4.7% Ahead Of CPI

STIR FUTURES
  • Fed Funds implied hikes are unchanged to slightly higher overnight, largely keep to the week’s range ahead of CPI after the strong climb last week.
  • 74bp for Nov (unch), 4.39% for Dec (+0.5bp), a terminal 4.67% for Mar’23 (+1bp) and 4.36% Dec’23 (+1bp).
  • Gov Bowman followed the minutes late yesterday seeing continued sizeable hikes on the table if inflation doesn’t ebb. First post-CPI Fedspeak scheduled for tomorrow with George (’22) and then Governors Cook & Waller.

FOMC-dated Fed Funds implied rateSource: Bloomberg

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