Courtesy of Mish.
In the press conference following today’s wimpy rate hike decision by the Fed, chair Janet Yellen responded to a reporter’s question about the possibility of a hike in October.
Yellen stated that October was still on the table because every meeting is a “live meeting“, and if the Fed hiked it would conduct an impromptu press meeting following the decision. Her answer reflects the fact there is no scheduled press conference following the October meeting.
What a joke.
The market effectively laughed in her face. Not only does the market not see a hike in October, it does not see one in December either, in spite of the fact that Yellen stated the majority of the FOMC participants still see a hike this year.
The CME Fedwatch sees things a bit differently.
16.1% Chance of Hike in October
45.3% Chance of Hike in December
Rate Hike Odds Discussion
Bear in mind the CME odds represent quarter point hikes even though the Fed Fund Futures very slowly price in hikes of an eighth of a point.
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