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Money Markets Cut Bets on Pace of Fed Tightening Amid Stock Rout

  • Traders no longer fully price in three hikes by late next year
  • President Trump said Fed is ‘going loco’ by continuing to hike
Bloomberg business news
Fed Is Far From Crazy, Says Standard Chartered's Vinals

Traders are cutting back predictions for how much the Federal Reserve will raise interest rates over the next year amid a slide in global stocks.

Money markets are now fully pricing in only two rate increases by the end of next year and around 80 percent of a third, after having priced in more than three hikes on Tuesday. The odds of the next move in December has dropped to 74 percent from 81 percent.