Free Trial

What US CPI Beat?

  • Hikes implied by FOMC-dated Fed Funds slid as Europe came in on broad risk-off sentiment, falling below levels prior to the US CPI upside surprise.
  • There’s a lack of impetus to challenge the Fed teeing up 50bp hikes at the next couple meetings (51bps Jun, 98bps Jul) before the pace continues to slow with 137bps for Sep and 186bps for Dec.
  • Helped by Bullard (’22) late yesterday saying inflation was hot but not far from expected, 50bp pace a good benchmark for now with 75bp not his base case.

Fed Funds rate implied by FOMC-dated Fed Funds futures for specific meetingsSource: Bloomberg

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.