The rate hike is considered a “major step” that “frontloads” the transition to interest rate levels consistent with bringing inflation back down to 2% target
The Governing Council expects to raise interest rates further, remains data-dependent and follows a meeting-by-meeting approach
Inflation is expected to stay above target for an extended period, projections...
The rate hike is considered a “major step” that “frontloads” the transition to interest rate levels consistent with bringing inflation back down to 2% target
The Governing Council expects to raise interest rates further, remains data-dependent and follows a meeting-by-meeting approach
Inflation is expected to stay above target for an extended period, projections...
Despite all that’s been going on over the last week with Goldilocks ISM and Non-Farm Payrolls, FedWatch is remarkably unchanged:
The September FOMC meeting is priced with a 57% chance of a 75 bps hike and 43% in favour of 50 bps.
Probabilities for November and December meetings are virtually unchanged.
The terminal rate remains at 375-400 bps.