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MNI Fed Review - Nov 2022: Destination Unknown

FED

Our review of the November FOMC meeting has been emailed to subscribers and is available on our website.

  • This week's meeting made clear the FOMC now expects a higher terminal rate. What that rate is, and how long to stay in "sufficiently restrictive" territory, are currently unclear.
  • At the next meeting, the Dot Plot median looks likely to be raised by at least 25bp and probably 50bp, implying 100-125bp more hikes from here.
  • For yet another FOMC, sell-side analysts were forced in the aftermath to up their terminal rate expectations – though in line with the messaging, we didn’t see any higher forecasts for the December meeting.

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