While the effective fed funds rate is at 4.58 percent and the Fed says it is targeting a range of between 4.5 percent and 4.75 percent, prices of fed funds futures imply a 54 percent chance that the target will be a range of 5.25 percent and 5.5 percent after the June meeting of the Federal Open Market Committee.
This is a dramatic shift in the views of market participants from a month ago. Back in January, the fed funds futures market implied the Fed would pause after one or two more hikes. There was a 51 percent chance that the rate after the June meeting would be between 4.75 percent and five percent. The market implied a 34.2 percent chance of a target range of five percent to 5.25 percent.
There’s also a non-trivial chance that the Fed could adopt a 50 basis point rise at the March meeting, which be an acceleration of hiking after the series of 75 basis points through most of last year and 50 basis points in December was followed by 25 basis points in February. A basis point is one-hundredth of a percentage point, so a 50 basis point hike is one-half a percentage point. A month ago, the market-implied no chance at all of that sized hike at the March meeting.
The swings came after a week in which data indicated that the labor market was not cooling off and inflation picked up in January. Jobless claims
Does the federalreserve really hike rates to control inflation or is the end result to place more citizens on unemployment as government dependents? Reducing employment can never be a goal of success.
And the Stock Exchange is taking a self off today as our economy suffers...thanks Biden!!!! Biden is worst President in history of America and has created this by his and his Administration's poor decisions
Right. Because if something does not work, you just do it more.
👎🏻🤦🏼♂️😡😤🤬
The Feds are going to crash our economy! They were pit in place to prevent this crap, their usefulness has expired.
If the government reduced spending....🤨
Reinstate all of Trump's policies and we'll be fine.
They are utterly incapable of controlling inflation when they do not control what is now runaway government spending. The only thing they can do is administer measures of poison to the economy to little practical effect. Plus, they aren’t doing any of this out of altruism.
Rate hikes don't seem to be working. Are they?
In other news: United States sends pallets of cash to foreign countries. Can’t understand why the economy is so bad. Film at 11.
We're from the government and we're here to help!
Darn right
:p
Uh oh
High inflation, rising interest, high spending, and the demand to allow debts to reach $42 trillion from the beneficiary.
'Unexpected'. Funny.
What are the 'fed funds futures' that investors are buying?
Thank goodness it’s just transitory. 🙄
The Federal Bank does not treat inflation because inflation can be treated with the laws set by Congress, but the important question is why do we not see a solution to the problem of inflation from the Federal Bank? Why do we only see interest numbers without a solution to anythi
Uncontrolled Government spending. The Fed is fighting a losing battle against Biden’s spending and gop SpeakerMcCarthy is silent
Just come and take everything at once ..it will be less painful than the cuts over and over ...
“Wrong Again” or just lying the entire time?
Incompetence all around.
How about a 2 point increase?
They will go way too high and it will be worse. There is something not right with their idea
I'm pretty sure 'unexpectedly' doesn't mean what they think it means.
Who'll pay? Middle-class, veterans, elderly and the disabled on fixed incomes. The teens and those in their twenties will still be blasting their base tech, burning rubber on their car tires, o.d. ing on dope, drinking, attacking and robbing, stealing from stores. F**K IT ALL!
Thanks, Biden Admin! We all will vote for you in 2024.
Unexpected by whom? Endless $ printing tends to cause this. Gas will also soar now that the election time release from the strategic reserve is gone.
Isn’t that the bird that stopped mid air and didn’t move? WTH
Endless printing of money for WW3 is great
In late 70s, early 80s, the fed had to raise rates higher than inflation. Back then mortgage rates were like 15%. Im hoping it doesn’t get that bad. But the fed has to get interest rates above the inflation rates to cool the economy to address inflation..
Jay Powell has to take rates up and do QT (stop buying bonds to further increase rates). He has to drive up cost of money…remove $$$ from economy too.
babs4america The Fauci of finance cannot risk crashing the economy by raising rates to inflation levels and destroying the $10 trillion Fed balance sheet so the kabuki continues until the dollar breaks or the consumer can’t borrow. Oh and the Communists want to continue to spend and print. (…
Inflation going to keep going up unfortunately. The infrastructure bill taking spending up 50% above baseline. You dump Trillions into and economy, demand soars! Not enough workers & supply. Costs soar!
Ukraine spending did this as well.
Should have done it months ago…
Can't win everything going up even more, when will it stop?,More importantly once inflation gone will prices of goods actually come down?
Republicans do not care that their welfare for big corporations and the rich policies leads to millions of jobs vanishing.
“Unexpectedly” 🤣
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