Bond Market Rattled as Fed Revives Bets on 2015 Rate Increase
- Probability nears 50% for central bank's Dec. 2015 meeting
- Likelihood had been about 37% before Wednesday announcement
Fed Revives Forward Guidance With 'Next Meeting'
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It just got a lot tougher for bond traders to rule out a Federal Reserve interest-rate increase in 2015.
The Fed’s Wednesday statement validated the views of analysts at Goldman Sachs Group Inc. and BMO Capital Markets, who had raised concerns that investors were underestimating the chance of a liftoff by year-end.