How Many Rate Hikes Does the Market Now Expect of the Fed?




Now Vs a Month Ago

  • The market now sees a terminal rate of 5.36 percent in September, call it 5.25-5.50 percent.
  • A month ago the market thought the terminal rate was 5.00 percent in June. 
  • Previously, the market expected a peak in June followed by two or three 25-basis point cuts all the way to 4.32 percent. 
  • The market now sees a a cut from 5.36 percent to 5.0 percent.

Author(s): Mike Shedlock

Publication Date: 11 Feb 2023

Publication Site: Mish Talk