BoA have cut its terminal Fed Funds forecast to 5 - 5.25% (from 5.25 - 5.5%)

In the wake of Wednesday's Federal Open Market Committee (FOMC) +25bp rate hike and Powell's press conference.

BoA:

• We take on board a greater tightening in lending standards, which could substitute for policy rate tightening
• We now project one more 25bp rate hike for a terminal range of 5.0-5.25%, down 25bp from our prior target terminal range

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These guys musta been reading ForexLive, we've been conveying the tightening lending standards -> substitute for rate hikes meme for the past week:

• the effect of tightening would have the same impact on demand growth as would an interest rate hike of 25 to 50 basis points

If you need a catch-up on Wednesday's FOMC-bonanza:

• Federal Reserve hikes rates by 25 bps, as expected.
• The full FOMC statement for March 2023. Hikes by 25 bps
• FOMC dot plot and central tendencies from March 2023 meeting. EOY 2023 5.1%
• A comparison of the changes from February to March statements
• Powell opening statement: Inflation remains too high
• Powell Q&A: Before the banking issues, it looked like we would have to raise rates higher
• Before the Fed hike, before the press conference and at the end of the press conference

Inflation fighter