Could you clarify which rate would need to be above 5.5% for the market to resolve YES? The effective federal funds rate? The bottom edge of the target range? The top edge of the target range?
Top edge of the target range >5.5%
@JonathanRay so basically, two more quarter point hikes. For practical purposes effective>5.5 is the same outcome as top>5.5 unless they do increments smaller than a quarter point, which they won't.
@JonathanRay current range is 5-5.25, so two more 25bps hikes would put the bottom edge at 5.5. so you meant to write bottom edge, right?
@chrisjbillington two hikes would be the smallest number of 0.25 hikes to make the top edge strictly greater than 5.5
Ah, I understand, thank you. So this resolves if the range goes to 5.5 - 5.75, assuming the usual increments.