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STIR: ADP Trims Remaining 2024 Cuts To 70bps

STIR
  • Fed Funds implied rates for near-term meetings have stepped a little higher on the back of the beat for ADP employment, with Nov and Dec close to highs seen after Powell’s NABE appearance on Monday re "this is not a committee that feels like it's in a hurry to cut rates quickly”.
  • Cumulative cuts from 4.83% effective: 34.5bp Nov (-0.5bp post-ADP), 70bp Dec (-1.5bp), 101bp Jan (-2bp) and 163bp June (-3bp). 
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  • Fed Funds implied rates for near-term meetings have stepped a little higher on the back of the beat for ADP employment, with Nov and Dec close to highs seen after Powell’s NABE appearance on Monday re "this is not a committee that feels like it's in a hurry to cut rates quickly”.
  • Cumulative cuts from 4.83% effective: 34.5bp Nov (-0.5bp post-ADP), 70bp Dec (-1.5bp), 101bp Jan (-2bp) and 163bp June (-3bp).