FED: The ultimate target for the federal funds rate has become more important

2022/11/23 20:51

Fed Minutes: As monetary policy approaches "sufficiently restrictive" levels, participants stressed that the ultimate goal of the federal funds rate has become more important than the pace of rate hikes. Before the Fed minutes, according to CME's "Fed Watch": the probability of the Fed raising rates by 50 basis points to a range of 4.25%-4.50% in December is 75.8%, and the probability of a 75 basis point hike is 24.2%; the probability of a cumulative 75 basis point hike by February next year is 29.5%, and the probability of a cumulative 100 basis point hike is 55.0%. The probability of a cumulative rate hike of 75 basis points by February next year is 29.5%, a cumulative rate hike of 100 basis points is 55.8% and a cumulative rate hike of 125 basis points is 14.8%.
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