🏦🔺Market Implied Rates Price In Fed Above 5.0% For Year Ahead: Cable FX Macro

**As seen in Macro Walk report 03/03/23, subscribe at cablefxm.co.uk/reports

• Expectations for Fed policy rate stand firm above 5.0% for the next 12 months as we head into risk events: Powell Testimony, Non Farm Payrolls, CPI. The developments here will set tone for market expectations

• Looking back three months ago, the market was far more certain on lower rates 1yr and 2yrs ahead. The latter has seen the largest repricing at +60 basis points

• The latests read on Fed fund futures price and additional 85 basis points of rate hikes by September, this compares with only 53 basis points back in January