CME Group FedWatch's December hike probability jumped above 70%
|Following the release of the FOMC statement and the updated economic projections report, the probability of a 25 basis points rate hike in December jumped to 70.6% from 56% a day ago, according to the CME Group FedWatch Tool, which calculates unconditional probabilities of Federal Open Market Committee (FOMC) meeting outcomes to generate a binary probability tree.
In its statement, the FOMC said that it was still seeing another rate hike before the end of the year. In fact, the economic projections report showed that 11 of 16 policymakers were in favor of a December rate hike. Furthermore, the statement also showed that job gains have remained solid and the household spending was expanding at a moderate rate.
- FOMC's decisions regarding monetary policy implementation - Sep 20, 2017
- FOMC statements: Comparison between July and September
- FOMC's updated economic projections - Sep 20, 2017
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