Traders Are Betting That Fed Rates Will Peak Shortly After 2023
- Eurodollar market is pricing in just one hike after 2023
- Block trade Tuesday underscores views on short, sharp cycle
This article is for subscribers only.
The Federal Reserve hiking cycle that’s expected to get underway next year might be largely done and dusted shortly after the end of 2023 if traders are right.
While eurodollar futures and options are pricing in numerous quarter point increases in 2022 and 2023, they’re pricing in just one after that, underscoring expectations for a relatively short and slight tightening cycle.