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Here's What The Fed's QE Tapering Will Look Like, According To Goldman


by Tyler Durden
Earlier today we showed that as a result of record high inflation expectations.
. the mood on Wall Street as revealed by the latest BofA Fund Managers Survey has reversed dramatically,
and March saw the biggest jump in short-term rate expectations in 2 years, up 16% to net 49%.
. even though,
on average, 1st Fed rate hike not expected until February 23.
Incidentally, this is not too far off from the market s own pricing which now implies almost three rate hikes by the end of 2023, a large hawkish shift since the FOMC last met in late January. While Goldman notes that this is much more hawkish than the bank s forecast or its expectation of the FOMC’s view, it is not obviously at odds with any explicit calendar guidance that Fed officials have provided yet, and therefore does not necessarily require pushback from the Fed. yet (at least not until yields spike another 50% bps which they may do tomorrow should the Fed deliver a more hawkish t ....

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