Traders trim bets on October Fed rate hike after Williams remarks
TLT•Traders put the chance of an October Fed rate hike at about 50-50, down from nearly 70% earlier in the day, after John Williams said he saw “no urgency” for further action. Futures priced in one rate hike by year-end.
1. Rate hike bets fall
Financial markets trimmed bets on an October Fed rate hike after New York Fed chief John Williams said he saw “no urgency” for further action following the central bank’s rate increase earlier this month. Fed funds futures indicated about a 50-50 chance of a quarter-point hike at the upcoming meeting, down from nearly 70% earlier in the day; short-term rate futures priced in one hike by year-end, in line with what Williams said he viewed as likely if the economy played out as he expected.
