China Turmoil Has Traders Cutting Odds of Fed Rate Move by April
- Chances of move by June also tumble as China concerns mount
- Treasuries have already returned 0.5% to investors in 2016
Inside the FOMC's Dec. Meeting Minutes
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The resurgence of Chinese stock-market turmoil in 2016 has investors increasingly betting that Federal Reserve officials will lose some of their resolve and delay future interest-rate boosts.
Traders see a 43 percent chance that policy makers in Washington will lift the benchmark rate by their April meeting, down from 52 percent as recently as Tuesday. Investors back from holidays this week witnessed stock plunges in China that led authorities to close trading early twice. Turmoil caused by worries over the world’s second-largest economy last year helped convince the Fed to delay a rate increase from September to December.