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Just Shy Of 5 Hikes In 2022

STIR
  • Fed Funds futures implied rates grind higher, with 32bps priced for the March meeting and a new high of 122.5bps following the Dec meeting.
  • Two key data releases at 0830ET, with the core PCE deflator for Dec (consensus for another +0.5% M/M) and the Q4 ECI of particular note after Powell specifically attributed the jump to 1.3% Q/Q in Q3 as a key reason to accelerating taper (cons. for marginal moderation to 1.2% Q/Q).

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