Fed Funds Price Out Rate Hikes Following ECB Hold on Rates
Thursday, August 7th, 2008Despite a better-than-expected pending home sales report coming out of
the U.S. on Thursday, the day’s soft jobless claims figures are instead
dictating the direction of the Fed fund futures
market.
Year-end rate hikes are consequently in the midst of being priced out.
Markets are pricing in a 62.3% chance that the Federal Reserve will keep
rates on hold. That represents an 18% greater chance than…
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