Evans: It's likely Fed funds peak will be revised 'slightly higher' in December

[forex4you]

Evans: It's likely Fed funds peak will be revised 'slightly higher' in December

<p>Note that the December meeting will be the final one for Evans before he retires.</p><ul><li>There's ample capacity to hike even with smaller increments</li><li><a href="https://www.forexlive.com/terms/i/inflation/" target="_blank" id="ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1" class="terms__main-term">Inflation</a> lags more than the real economy, need time to assess</li><li>A 50 bps hike is still a very large hike</li><li>Inflation reports are still likely to be disappointing</li><li>If inflation isn't favorable and you still want to hike expeditiously 'you can do 50 bps repeatedly'</li><li>It's likely Fed funds peak will be revised 'slightly higher' in December</li><li>Fed is looking for the right level of restrictiveness</li></ul><p>This is the first indication of how much higher the Fed is thinking about going in 2023. 'Slightly higher' might puts anything in the 4.75-5.50% range in play. The Fed funds market is at 5.10%.</p>

                This article was written by Adam Button at forexlive.com.

Source: Evans: It's likely Fed funds peak will be revised 'slightly higher' in December

forexlive.com