Interest rate up to at least 6.5% in 2023, why?

The Fed chairman has given the market a very important clue on 13 Dec 22.

At what level will he consider an interest rate cut?

He said “I wouldn't see us considering rate cuts until the committee is confident that inflation is moving down to 2% in a sustained way,” meaning only if CPI is heading nearing 2% then it is hopeful to see a rate cut.
Market consensus for CPI to range between 5% to 8% for this year. If this is the case in 2023, the Fed is likely to continue to hike the rate moderately at 0.25% in each meeting just to bring inflation down.

I am seeing this as the best case scenario.

We can participate in hedging the market and trading the interest rate in this example.

CME Micro 30 Year Yield Futures
Minimum fluctuation

0.001 point = $1
0.01 point = $10
0.1 point = $100
1 point = $1,000

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I hope this tutorial will be helpful, in enabling you to read into the market with greater clarity.

Stay-tune for the video version shortly, we will do more in-depth study.