As we wrap up the last Central Bank week of the year, it’s safe to say that the market hasn’t provided much incentive to conclude the celebratory spirit that started in November before the New Year.

Powell’s press conference and the FOMC dot plot have continued to push interest rates lower and inject more USD liquidity into global markets. Risk assets have enthusiastically embraced this liquidity boost, even though John Williams’s recent attempts to temper the euphoria by clarifying that the Fed is not currently discussing rate cuts. So far, it appears that the OIS curve is gradually dispelling any doubts about that assertion

Chart 1: Implied FFR