Economist at UOB Group Lee Sue Ann suggests the Fed is likely to raise the Fed Funds Target Range by 25 bps at both its March and May gatherings.

Key Quotes

“The latest FOMC minutes strongly suggest that we are not quite near the end of the current tightening cycle, despite the improving inflation trajectory.”

“While the Fed retained its pledge that ‘ongoing increases’ remaining appropriate; the minutes also showed that the view of downshifting to 25bps hike is the majority of the FOMC policy makers, we continue to expect the Fed to hike for the next two meetings in clips of 25-bps hikes at the Mar and May 2023 FOMC meetings, bringing our terminal FFTR level to 5.25%.”