Us short-term interest rate futures have begun to digest expectations that the Fed will raise interest rates for the first time at the end of 2022, compared with previous expectations for the first quarter of 2023. This repricing began after the FOMC announcement on Wednesday and continued in the mornings of Asian and European sessions.

Eurodollar futures expiring in December 2022 fell to 99.515 on Thursday, the lowest level in more than a month, while the federal funds rate futures contract hit 99.73 in December 2022, meaning the interest rate will reach 0.27%.

Overnight index swaps now expect FOMC to raise interest rates by 24 basis points in December 2022 and for the second time in June 2023.

After 2022, the market is expected to digest much less rate increases than the Fed's updated bitmap.