A Fed Pause In June, Hike In July, Then Nothing Till 2024?

Weighted Average CME Interest Rate Projection 2023-06-14


Those are the weighted interest rate odds based on CME FedWatch data that reflect futures positioning of traders. 

In March, rate hike odds plunged on three regional bank failures. 

Since March, traders finally came to believe higher for longer. For January and March of 2024, the market priced in five more quarter-point hikes than in March of 2023.

Assuming the Fed hikes in July, the market then does not expect a full quarter-point cut until January of 2024.

These numbers may change a great deal depending on what the Fed says this afternoon or when the Fed publishes the full minutes of the meeting in a couple of weeks.


More By This Author:

A Political And Economic "Doom Loop" Is Underway In Germany
Tame CPI Inflation? Not With Shelter Up Another 0.6 Percent
Critical Materials Risk Assessment By The US Department Of Energy

Disclaimer: Click here to read the full disclaimer. 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Or Sign in with