No Need for the Fed to Rush to Hike
The Federal Open Market Committee (FOMC) will meet this week, and the swaps market thinks there’s a significant chance it will decide to hike rates.
The CME Group’s FedWatch tool, which uses prices of federal funds derivatives to calculate the implied odds of Fed policy moves, shows a 37.9 percent chance of a hike this week and a 62.1 percent chance that the Fed remains on hold. That’s around the same odds the market was implying on Friday but very different from just a week ago, when the derivatives market was implying just a 16 percent chance of a hike...
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