To The Moon

Fed announced to increase 25 bps after March FOMC meetin. Before we talk about the comments of the intitutions, let's look at the basic facts.I. Basic facts1. The Fed raised rates by 25 basis points as expected by the market, and its Fed Fund rate expectation (dot plot) is a bit more hawkish compared with the December FOMC last year:the median benchmark rate expectation is 5.1% at the end of 2023, the same as the December FOMC;the median benchmark rate expectation is 4.3% at the end of 2024, higher than the December FOMC's 4.1%.Source: BloombergHowever, the market clearly does not agree with Fed's hawkish stance. Both Fed rate futures and the OIS are pricing in the Fed cutting rates to around 4% by the end of this y

Fed announced to increase 25 bps after March FOMC meetin. Before we talk about the comments of the intitutions, let's look at the basic facts.I. Basic facts1. The Fed raised rates by 25 basis points as expected by the market, and its Fed Fund rate expectation (dot plot) is a bit more hawkish compared with the December FOMC last year:the median benchmark rate expectation is 5.1% at the end of 2023, the same as the December FOMC;the median benchmark rate expectation is 4.3% at the end of 2024, higher than the December FOMC's 4.1%.Source: BloombergHowever, the market clearly does not agree with Fed's hawkish stance. Both Fed rate futures and the OIS are pricing in the Fed cutting rates to around 4% by the end of this y