Probability of Dec Fed Funds Target Rate Hike Now Above 50 Percent

Jon Economy, Fiscal Policies, Market Commentary

According to The Fed Funds futures data, the implied probability of an increase in the Fed Funds target rate at the December meeting is 52%. And the implied probability has been rising over the past month, despite the dismal economic data.

The US Treasury yield curve has risen by over 20 basis points for the 5 and 7 year Treasury yields, indicating that the market assessment of a rate increase in rising.

This post was published at Wall Street Examiner by Anthony B. Sanders – November 3, 2015.