Fed September Rate-Hike Odds Rise to 56%, With 25 Basis-Point Increase Favored
JH Kim
Summary
- Cointelegraph reported that interest-rate futures markets are pricing in a 56% chance that the Fed will raise rates by 25 basis points at its September FOMC meeting.
- With the probability of a rate hike now above 50%, the market is closely split over the direction of monetary policy in September.
- Fed Chair Kevin Warsh said inflation remains elevated and stressed that price stability is the Fed's top priority.
Forecast Trend Report by Period
The probability that the Federal Reserve will raise its benchmark interest rate in September has climbed above 50%.
Cointelegraph reported on August 28 that interest-rate futures markets are pricing in a 56% chance the Fed will raise rates by 25 basis points at its September Federal Open Market Committee meeting. One basis point is equal to 0.01 percentage point.
With the odds of a rate increase now above 50%, the market is closely split over the direction of monetary policy in September.
Earlier, Fed Chair Kevin Warsh said in a Jackson Hole speech that inflation remains elevated and stressed that restoring price stability is the central bank's top priority.
JH Kim
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