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Holding With 25bp Feb Hike Seen Locked In From FOMC

STIR FUTURES
  • Fed Funds implied hikes hold Friday’s nudge lower for Feb 1 to 25.5bp after Gov. Waller also leant support to such a move.
  • Similar profile beyond: cumulative 46bp to Mar (+0.5bp), 57bp to terminal 4.90% Jun (unch) before 48bps of cuts to 4.43% in Dec (+1bp).
  • Latter is despite Waller pushing back on cuts, noting a risk management approach requires holding rates higher than would otherwise be the case, in what was the final Fedspeak before the media blackout began.

Source: Bloomberg

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