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Fed Funds Futures

All articles tagged with #fed funds futures

markets14 days ago•1 min saved

Markets turn hawkish as inflation surge pushes December Fed hike pricing

Traders in fed funds futures now price a Federal Reserve rate hike as the next move, with December odds near 51%, January about 60%, and March above 71%, per CME Group’s FedWatch, in response to a week of multiyear inflation highs. The shift raises expectations of higher policy rates into 2027, even as some commentary—including former Fed governor Kevin Warsh’s view that rates could be lowered in the current environment—adds policy uncertainty after dissent at the last FOMC meeting over hints of rate cuts.

via CNBC|

#december-hike-probability #fed-funds-futures #federal-reserve

financeeconomy2 years ago•1 min saved

"Economists' Uncertainty Grows as Fed Rate Cut Expectations Hit 2024 Low"

Futures traders have reduced their expectations for how much the Federal Reserve will cut rates in 2024 to the lowest level since October, with Fed funds futures contracts for December reflecting expectations of around 60 basis points in rate cuts, compared to 150 basis points at the start of the year. This shift comes amid evidence of continued strength in the US economy, with Treasury yields moving higher as a result. The combination of strong data and limited progress on inflation has led top officials to advocate for patience in approaching the decision on when to cut rates, with investors closely watching the Consumer Price Index for further insight.

via Reuters|

#fed-funds-futures #federal-reserve #financeeconomy

finance2 years ago•0 min saved

"Uncertainty Grows Over 2024 Interest Rate Cuts Amid Inflation Data and Economic Strength"

Fed-funds futures are indicating uncertainty about a potential rate cut in June as investors await inflation data, with the Dow Jones Industrial Average ending nearly flat after its worst week in a year and the 10-year yield rising.

via MarketWatch|

#10-year-yield #dow-jones-industrial-average #fed-funds-futures

finance2 years ago•0 min saved

"Market Expects 144 bps Rate Cuts as Fed Bridges Gap and Powell Pivots for a Happy New Year"

The Fed funds futures market is now pricing in 144 basis points of rate cuts for next year, up from the previous estimate of 107 basis points. The lack of pushback from Fed officials and a similar dot plot have reinforced market expectations of rate cuts. As a result, the market will continue to price in cuts, as seen in the surge of US 2-year yields.

via ForexLive|

#fed-funds-futures #finance #interest-rates