Futures Traders Just Dramatically Repriced the Chances of a Fed Hike Next Week
Inflation is clearly moving in the wrong direction.
Overview
Suddenly, an interest rate hike by the Federal Reserve next week looks a lot like a sure thing.
That's according to the federal funds futures market, which now puts the chances of a rate hike at next week's Federal Open Market Committee (FOMC) meeting at about 88%. Just a week ago, futures pricing had the chances of a hike at 59%. And a month ago, it was a coin flip, with odds at 48%. That's according to CME FedWatch, which tracks futures pricing.
Details
So, what happened to make futures traders dramatically hike the probability that the Fed will hike its target rate on Sept. 16?
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.