Thread: Fed Interest Rate Hikes

Originally Posted by tsptalk

Currently the market is pricing in a 69% chance of a 0.75% hike next week, and a 31% chance of a 1.0% hike.

That's what happened at the last rate increase.

Speculation, but isn't that what we all do?


The Fed could surprise markets by sounding even more aggressive as economy teeters

KEY POINTS

The Federal Reserve is expected to raise interest rates by three-quarters of a point Wednesday afternoon, its second hike in a row of that size.

Investors will be looking for guidance from Fed Chairman Jerome Powell on what the central bank may do at its September meeting, but he is likely to be vague and leave options open.

“I do think they’re going to lean a little bit more hawkish on September,” said one strategist. “They’re just not seeing the progress on inflation.”

https://www.cnbc.com/2022/07/26/the-...-teeters-.html

Today The Fed Hikes 75bps: What Happens Next Has Wall Street Hopelessly Split

What the Fed says at Wednesday’s meeting is going to matter much more than what they do.

That, according to Bloomberg's Garfield Reynolds, will be the case even if Powell shocks us all by hiking less or more than the three-quarter point shift that’s been solidly priced in for most of the time since the June meet.

https://www.zerohedge.com/markets/to...pelessly-split

The jobs report doubled the chances of another 0.75% rate hike at the Sep meeting. 0.50% was the consensus before today.