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MNI Fed Preview: June 2022 - UPDATE: Justifying 75

MNI Fed Preview: June 2022 - UPDATE: Justifying 75

MNI Fed Preview: June 2022 - UPDATE: Justifying 75

EXECUTIVE SUMMARY:

  • With 90+% probability of a 75bp hike now priced into rate futures, the Fed is likely to deliver just that on Wednesday.
  • The Statement will incorporate stronger hawkish language in order to justify the surprise acceleration in the hike pace.
  • June’s Dot Plot will become much more hawkish vs March’s and vs what was expected prior to a 75bp hike becoming consensus. But the outlined rate path will probably fall short of current market pricing.

FOR FULL ANALYSIS:

FedPrevJun2022-UPDATE.pdf

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