Ahead of this week’s monetary policy meeting, the CME FedWatch tool has updated its latest market pricing data on the Fed’s interest rate path. The odds of the Fed holding rates steady at the current meeting are overwhelmingly high at 92.8%, while the probability of a further 25-basis-point hike is just 7.2%.
More notably, looking ahead to December this year, investors are heavily betting on another round of tightening. Specifically, the probability of the Fed raising rates by a further 25 basis points is as high as 79.7%, while the odds of a 50-basis-point hike stand at 6.1%; the chance of rates remaining unchanged is now just 14.2%.
This shift in expectations is keeping the US dollar and bond yields elevated, putting some pressure on traditional risk assets. The market is bracing for a scenario in which interest rates stay higher for longer to rein in inflationary pressures.
For crypto markets, a cautious short-term sentiment could make institutional investors more wary of rallies in $BTC . Investors should closely monitor the messaging at the press conference to accurately assess the liquidity outlook for the final quarter of the year. 📊
#Fed #InterestRates #FOMC
More notably, looking ahead to December this year, investors are heavily betting on another round of tightening. Specifically, the probability of the Fed raising rates by a further 25 basis points is as high as 79.7%, while the odds of a 50-basis-point hike stand at 6.1%; the chance of rates remaining unchanged is now just 14.2%.
This shift in expectations is keeping the US dollar and bond yields elevated, putting some pressure on traditional risk assets. The market is bracing for a scenario in which interest rates stay higher for longer to rein in inflationary pressures.
For crypto markets, a cautious short-term sentiment could make institutional investors more wary of rallies in $BTC . Investors should closely monitor the messaging at the press conference to accurately assess the liquidity outlook for the final quarter of the year. 📊
#Fed #InterestRates #FOMC