CME Group FedWatch: December rate hike probability rises to 63.7%

Eren Sengezer FXStreet

According to the CME Group FedWatch Tool, markets are now pricing a 63.7% probability of a second 25 bps rate hike in December compared to 60.6% seen on August 21. The odds of a 25 bps rate hike in September remains steady at 93.6%.

The meeting minutes published by the FOMC reiterated that the Committee that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. "The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term," the publication read.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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