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On September 16th, the Federal Reserve raised the federal funds target range by 25 basis points to 3.75% to 4.00%, and the current short-term rate forecast is no longer a benign glide path lower. Futures markets now imply an effective Fed Funds rate of approximately 4.2% by December 2026 and roughly 4.7% by September 2027….

Based on the futures market, the Federal Reserve is expected to raise the Fed Funds rate to 3.00% at its December 2022 meeting. The Fed will also aggressively shrink its balance sheet to tame unwanted inflation. These two Fed moves, along with the economic environment and customer behavior will impact your forecasting of your cost…