The June contract suggests an effective Fed Funds rate of 1.08%, 75 basis points higher than where the effective interest rate is likely to be on Thursday, after taking into account the just-announced 25 basis point hike. The Fed tends to move in 25 basis point increments, meaning a 50 basis point move will be priced for May, the next meeting, or June, the next.


This post Fed price hikes signal bigger rate hike at one of next two meetings was original published at “https://www.bloombergquint.com/global-economics/fed-pricing-signals-super-sized-hike-at-one-of-next-two-meetings”

LEAVE A REPLY

Please enter your comment!
Please enter your name here