Fed Officials Still Need to Win Over Key Voter: The Bond Market
- Futures indicate 50% chance of December interest-rate boost
- Bond market unconvinced by Fed's projected path, futures show
Fed Revives Forward Guidance With 'Next Meeting'
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Even after putting a December interest-rate boost back on the bond market’s radar screen, Federal Reserve officials still haven’t gotten traders’ full stamp of approval for their projected path of increases.
Futures indicate that traders see about a 50 percent chance that the Fed will raise interest rates from near zero in December. Overnight index swaps send a similar signal, indicating a 45 percent probability of liftoff then.