With the arrival of the pandemic crisis, the FED had cut rates aggressively close to zero. In addition, it had announced an adaption of its interest rate policy towards an “average inflation targeting” and that it will keep short term rates low for a multi-year period.
Since late 2020, the long end of the USD OIS swap curve has started to steepen, but no Fed Funds rate hike is priced in before 2023.
