Bull market bets increase by 0.50 pp in September after Fed minutes – Money Times

Jerome Powell
Until this morning, the possibility of an increase of 0.50 pp was 49.5%. (Image: Flickr/Federalreserve)

Fed funds futures began to show a higher probability of a 0.50 percentage point increase in fees in September, after the Federal Reserve publish the minutes of the last meeting of the Federal Open Market Committee (FOMC).

According to CME Group, the chances of the Fed raising the rate by 0.50 pp are 59.5%, while 40.5% indicates a 0.75 pp readjustment. The market, for the time being, does not consider readjustments of 0.25 pp and 1 pp.

Until this morning, the possibility of an increase of 0.50 pp was 49.5%, before 50.5% increase of 0.75 pp. The market, for the time being, does not consider readjustments of 0.25 pp and 1 pp.

FOMC Minutes

In the text, the Fed points out that inflation remains unacceptably high – above the 2% target – and should remain so for a while longer. In addition, job creation remains robust, although a moderate rise in unemployment is expected.

Leaders indicate that it is appropriate to maintain the cycle of interest rate hikes, but at a slower pace. This suggests that the central bank should not promote new increases of 0.75 pp or 1 pp. The Fed also indicated that it would be appropriate to maintain the restrictive level for some time for inflation to return to the target.

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About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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