: Fed terminal rate view cut by 50 basis points by BNP Paribas

The terminal rate forecast from BNP Paribas was cut by a half point, to 5.25% from 5.75%. “The tightening of US financial conditions – and likely further tightening in lending standards and reduction in credit provision – raises the prospect that the Fed will have to do less with the policy rate, all else equal,” said economists from the French bank, who still expect a quarter-point increase in May.

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