CME Group FedWatch's December hike probability jumped above 70%

Eren Sengezer FXStreet

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.

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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