HISTORY: Fed Chair Jerome Powell and his 18 central bank colleagues are expected to continue supporting a fourth straight 75 basis point rate hike at next week’s meeting.
But the bet in interest rate futures markets is now heavily in favor of a half-point hike at the Fed’s December meeting — a move that would put interest rates within a 4.25% to 4.5% range — and no more than half a point further over the next two meetings.
Bets on rate cuts for the second half of 2023 are also mounting, reflecting traders’ expectations that a response from the Fed to what many economists expect by then will be at least a mild recession.
Comments are closed.