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Implied Fed Hikes Where They Started The Week

STIR FUTURES
  • After a week of wild swings, Fed Funds futures are close to where they opened this week after last weekend's news that Putin had ordered the nuclear deterrent into a “special mode of combat service”.
  • There has since been continued escalation with greater targeting of civilians but senior Fed leadership assured the need to move ahead with the hiking path, first with Powell and then Williams, and in turn also supported by Evans (2023) today.
  • March sits softer at 23bp, but after that there continues to be a cumulative 95bp for July and 142bp for December.
  • Russia-Ukraine headlines will no doubt dominate the weekend and onwards whilst the next major release is CPI for Feb on Thu.

Source: Bloomberg

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