Fed Raises Target Rate To 2%, 10Y-2Y Treasury Slope Flattens To Below 40 BPS (Flattest Since 2007)

As expected, The Federal Reserve raised their target rate (upper bound) to 2%.


However, the interest on excess reserves is now 1.95% (not 1.75% according to Bloomberg).


At the same time, the US Treasury 10Y-2Y slope flattened to below 40 basis points, the lowest since 2007.


Now for the Fed Dots Plot.



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