Following Fed Chair Janet Yellen’s dovish speech Tuesday, fed funds futures markets are pricing in only a 20% chance of a rate hike in June. That’s down from 30% odds before the speech, according to Aaron Kohli of BMO Capital Markets.
As recently as March 15, futures markets priced in a 50% chance of a hike by June, Kohli points out in his closing note to clients Tuesday.
Most Wall Street economists have been targeting June as their best guess for when the Fed will next raise rates. They have said they expect two hikes this year....MORE
Wednesday, March 30, 2016
"Fed Funds Price in Only 20% Chance of June Rate Hike"
From Barron's Income Investing: