Fed Rate Futures Downgrade the Likelihood of an Inter-Meeting Hike
- February contract returns to where it was Thursday morning
- Record-high volume in front-month contract as Bullard spoke
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The fed funds futures market has repaired the damage caused Thursday by comments from St. Louis Fed President James Bullard, who said he was open to the idea of inter-meeting rate hikes.
The February contract is back to a price of 99.90, implying a rate of 0.10%. That level was reached earlier Thursday, after the hotter-than-expected January CPI report. After Bullard’s comments were reported the contract fell to 99.845, pricing in a 30% chance of an inter-meeting hike.