The Fed May Cut in June

The futures market has recently changed its mind about the Federal Reserve. Traders think the first rate hike could come as early as June, which is still eight months away.

Check out this chart:

The blue line is the odds of no rate cut by June. The orange line is the odds of one rate hike by June. Notice how in the last month the conventional wisdom has gone from no chance of a June hike to about 50-50. The green line is the odds of two rate hikes by June.

Posted by on October 22nd, 2021 at 1:49 pm


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