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Market Bets on Fed Rate Hike Wednesday, with Expectations at a Level Not Missed Since 2008
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Bond traders are highly confident that the Federal Reserve will raise interest rates at its upcoming Wednesday meeting, with market expectations reaching levels not seen in decades. Data compiled by Bloomberg since 2008 indicates that whenever market expectations for a rate hike have been this high, the Fed has always followed through. Caesar Maasry, director of investment research at Lunate, noted that the market is not leaving room for a dovish rate hike scenario. Alex Cohen, currency strategist at Bank of America, described the upcoming Fed decision as the most consequential in a while, adding that with expectations of a rate hike reaching around 90%, it would be almost unprecedented if the Fed left rates unchanged. The article highlights the strong conviction among bond traders and analysts that the Fed will act decisively.
Source report
Bond traders are more confident than they have been in decades that the Federal Reserve will raise interest rates at its upcoming meeting on Wednesday.
According to data compiled by Bloomberg since 2008, whenever market expectations for an interest rate hike have been this high, the Fed has consistently followed through without exception.
"The market is not leaving room for a dovish rate hike scenario," said Caesar Maasry, director of investment research at Lunate.
Alex Cohen, currency strategist at Bank of America, emphasized the significance of the decision: "Tomorrow's Fed decision will be the most consequential in a while. With expectations of a rate hike reaching around 90%, it would be almost unprecedented if they left it unchanged."
Source
domesticWestern
Part of this Story
Markets price 93% probability of Fed rate hike on Wednesday, September 16