Fed Traders Bet That a Half-Point Hike Unlikely, Not Impossible
- Investors dial back their expectations in light of Ukraine war
- Markets had previously seen good chance of a super-sized hike
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Overnight swaps linked to the dates of Federal Reserve policy meetings now suggest that a hike of more than 25 basis points at the March gathering is all-but-impossible, although not entirely off the table.
Traders have dialed back their expectations for the pace of central bank tightening in light of Russia’s invasion of Ukraine and the response of other nations to it.