Fed Rate Hike by December Seen More Likely on Jobs Data: ChartBy
The U.S. jobs report for July breathed new life into bets that the Federal Reserve will raise interest rates this year. The data spurred an increase in the implied rate on federal funds futures contracts that expire in December, a gauge of expectations for where the fed funds effective rate will average at that time. As a result, futures traders see a 49 percent chance of a hike by December, up from 36 percent before the report’s release.
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