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Chance We'll See a Fed Funds Rate Hike This Year?

Thursday, April 22, 2010 - 1:03 PM
You can see the probability of a Fed funds target rate hike at the future FOMC meeting using the CME Group FedWatch tool. Click on the date of the future FOMC meeting, and the tool will show you a bar chart of the probabilities. According to the website, the "probabilities of possible Fed Funds Target Rates are calculated based on the post-meeting Fed Fund Futures contract price."

It shows no chance of a rate hike for next week's April 28th meeting, and a 14% chance of a rate hike for the June 23rd meeting.

Thanks to the reader who emailed me the link to this tool.
1
Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,688
1. Friday, April 23, 2010 - 7:27 AM
So, according to the CME Group tool we can look forward to a Fed Funds Target Rate of 1% roughly a year from now. What were deposit rates averaging the last time the Fed Funds Target Rate was at that value?
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
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