Traders Now See Later Rate Hike

The reason for the Larry Rally is that traders see a rate hike coming later under Yellen:

Traders now give a 55 percent probability of the first rate hike in December 2014, and 68 percent chance in January 2015, according to CME Group’s Fed Watch, which generates probabilities based on the price of federal funds futures traded at the Chicago Board of Trade. On Friday, traders saw a better-than-even chance of the first increase in October 2014.

The Fed has said they don’t see raising rates until the middle of 2015 at the earliest.

Posted by on September 16th, 2013 at 12:12 pm


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