Number 9! Fed Now Expected To Raise Target Rate 9 Times Over Coming Year As Mortgage Rates Rise To 4.54%

Number 9.

According to Fed Funds Futures data, The Federal Reserve is now forecasting 9 rate increases over the next year.

Fed Funds Futures are pointing to 8.924 rate hikes by the Fed FOMC meeting on February 1, 2023.

The US Treasury 10Y-2Y curve flattened by 5.5 bps today with the entire curve downshifting.

The Federal Reserve reminds me of The Office episode “Malone’s Cones.” They can’t really explain why they kept rates so low for so long (policy error) and seem to risk collapsing the market with rapid rate hikes without much sensible explanation.