Odds of autumn rate hike by Fed increase after summer hold

SAN FRANCISCO (MarketWatch) — Futures traders have increased their bets that the Federal Reserve will start raising rates in late November after a period of holding rates at the current 2% level. The November fed funds futures contract Wednesday mid-morning priced in about a 56% chance that the central bank will raise its key interest rate by a quarter-point when it meets in late October, to 2.25%, up from 48% odds at the Tuesday settlement and only 16% Monday. Odds slipped slightly from levels before the Labor Department said consumer price growth moderated in April. For the late June meetings, traders are pricing in a 6% chance of another quarter-point cut, to 1.75%.
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Original post by Forextvblog

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