luv2read
06-10-2008, 10:38 AM
Chances jump of rate hike as early as August
By Laura Mandaro
Last update: 11:26 a.m. EDT June 10, 2008
SAN FRANCISCO (MarketWatch) -- Futures traders increased their bets that the Federal Reserve would hike interest rates as early as August, after investors focused on Fed Chairman Ben Bernanke's concerns on inflation. The August contract fell, implying at least a 68% chance of a quarter-point increase to 2.25% when policymakers meet August 5. Last night, the contract implied a roughly one-third chance. By the Fed's late October meeting, futures traders are now fully pricing in the chance of a half point hike to rates, to 2.50%.
:rolleyes:
By Laura Mandaro
Last update: 11:26 a.m. EDT June 10, 2008
SAN FRANCISCO (MarketWatch) -- Futures traders increased their bets that the Federal Reserve would hike interest rates as early as August, after investors focused on Fed Chairman Ben Bernanke's concerns on inflation. The August contract fell, implying at least a 68% chance of a quarter-point increase to 2.25% when policymakers meet August 5. Last night, the contract implied a roughly one-third chance. By the Fed's late October meeting, futures traders are now fully pricing in the chance of a half point hike to rates, to 2.50%.
:rolleyes: