Market expectations for a Federal Reserve rate hike have fallen sharply, with the probability of a rate hike this month dropping to around 50%.

robot
Abstract generation in progress
Mars Finance reported on September 3 that the possibility of the Federal Reserve raising interest rates this month is now essentially a coin toss. According to CME FedWatch data, the market is currently pricing in about a 50% probability of a 25-basis-point rate hike, down from as high as 70% yesterday. Several Federal Reserve officials previously made remarks attempting to dispel the market’s view that a rate hike was a foregone conclusion. Federal Reserve Governor Waller said tonight that if the August data show continued improvement in inflation, he would support keeping interest rates unchanged. A day earlier, New York Fed President Williams also said that there is currently insufficient justification for supporting a rate hike.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
73 views
  • Reward
  • 5
  • Repost
  • Share
Comment
Add a comment
Add a comment
CushionSitter
· 4 hours ago
From 70% down to 50%, the market is repeatedly whipsawed by the Fed’s rhetoric.
View OriginalReply0
RetroRadioSignal
· 4 hours ago
Waller has left himself plenty of room to backtrack; no one dares bet before the August CPI is released.
View OriginalReply0
FibFisherman
· 4 hours ago
Those betting on no rate hike in September can go pick up money at CME—the odds have gotten more attractive.
View OriginalReply0
EggShellPlan
· 4 hours ago
Williams’ “without sufficient reason” — translate it as: “Let’s wait a little longer and see.”
View OriginalReply0
RoyaltyPrinter
· 5 hours ago
You call a 50% probability a 50-50 chance? This is Schrödinger's rate hike.
View OriginalReply0
  • Pinned