CME Group FedWatch's odds of a June rate hike rise back to 78.5%
|President Trump’s visit to the Middle East has shifted the focus away from the political turmoil, while the Fed policymakers continue to signal potential for 2 more rate hikes this year.
Consequently, the odds of a 25 basis point rate hike this year have moved back to 78%. CME Group FedWatch tool, which calculates unconditional probabilities of Federal Open Market
Committee (FOMC) meeting outcomes to generate a binary probability tree, on Wednesday, had shown that the chances of a rate hike in June fell to 64.6%.
About two weeks back, the probability was seen at 87.7%.
Focus on Fed speak
Minneapolis Fed President Neel Kashkari, Philadelphia Fed President Patrick Harker, Federal Reserve Governor Lael Brainard and Chicago Fed President Charles Evans will make public appearances today.
The Fed rate hike odds could revisit the highs seen around 87% if the policymakers brush aside the political uncertainty and talk about rate hikes and balance sheet normalization.
On Wednesday, the Fed will release the minutes of its most recent policy meeting at 18:00 GMT.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.