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Wrightson ICAP FOMC Review: Upward Tweak To Admin Rates "At Some Point"

FED

Wrightson ICAP's focus at the April meeting was on the FOMC's decision to administered rates unchanged, as "yesterday morning's fed funds data made life easy for the Fed. Not only did the funds rate not slip from 0.07% to 0.06%, but the 75th percentile of the distribution moved back out to 0.08%." This meant the Fed had no reason to move pre-emptively.

  • Future action: Powell noted in his press conference that the Fed expected downward pressure on O/N rates over time, "implying that an upward tweak will be on the table at some point – potentially on an intermeeting basis."

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