Maybe No Rate Hike this Year

One of the more dramatic changes of the past few weeks has been the market’s abrupt change in its outlook for interest rates. Not that long ago, Wall Street thought the Fed would raise rates a few times this year, perhaps as many as four — that’s what the Fed has said.

The futures market, however, sees a different story. Here are the odds the Fed will raise rates over the next few months.

March 17.4%
April 23.1%
June 34.7%
July 37.8%
September 41.5%
November 43.9%
December 52.6%
February 57.4%

Meaning, it’s not a likely event until very late in the year. In fact, it’s quite possible that the Fed won’t touch rates all year.

Posted by on February 1st, 2016 at 10:23 am


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