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Mester Broadly Repeats, May FOMC Pricing Nudges Off ADP Lows

FED
  • Most comments from Mester (’24 voter) a repeat of yesterday, expecting the need to take rates a little higher and then hold. The only addition is: *MESTER: TOO SOON TO SAY WHETHER FED WILL RAISE RATES IN MAY, but it’s consistent with uncertainty of bank turmoil effects having yesterday noted the watching of credit tightening.
  • Fed-dated OIS has pushed back to 10.5bp of hikes for the May FOMC off post-ADP lows of 9bp but is still down from closer to 12.5bps at the start of the US session.

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