The market has finally returned to a sense of normalcy after the recent volatility, and investors are eagerly awaiting the next move. According to Waller, quarterly goings forward may be the new norm. However, there’s more to this story than meets the eye. Let’s take a closer look at the recent SOFR movement and what it could mean for the market.

On March 26, SOFR reached an impressive high of 95.46. While this may seem like a coincidence, it’s important to consider the context. The last time SOFR traded at these levels was in December, around the same time as the Fed’s December meeting. Could this be more than just a coincidence?

It’s worth noting that the Fed has been closely monitoring the market and economic conditions since the global pandemic began. With the recent surge in SOFR, it’s possible that the Fed may take this as a sign of a strengthening economy and adjust its monetary policy accordingly.

While the Fed has yet to make any official announcements, the market is already reacting to these developments. The S&P 500, for example, has reached new highs in recent weeks, with investors optimistic about the future of the economy.

However, it’s important to remember that the Fed’s decisions are not made overnight. There are a variety of factors at play here, including economic indicators, inflation rates, and geopolitical events. The Fed will likely take a thorough look at these factors before making any major decisions about monetary policy.