22 days ago • Posted by Paul de La Baume

Odds of a #Fed rate hike jump. #macro #rates #investing #trading

FOMC minutes highlighted a more aggressive plan for policy normalisation. The market re-priced odds at 60% chance of the Fed raising interest rate by 0.25% at its March meeting. The minutes of the 15 December meeting released yesterday afternoon, suggested three rate increase this year and three the following year as inflation concerns deepened. In our view the market is getting ahead of itself and the Fed could see some comfort in keeping a more accommodative policy if markets and the overall macro environment weakens. The market could be setting itself up for a favorable surprise by the Fed.