Markets increased their bets on a Federal Reserve rate hike at next week’s meeting after the release of the first major inflation report of the week, according to Odaily. The report showed that U.S. producer prices rose 5.4% over the 12 months through August. Before the data was released, markets had priced in roughly a 65% chance that the Fed would raise rates by 25 basis points at its Sept. 15-16 meeting. Based on pricing in Chicago Mercantile Exchange (CME) federal funds futures contracts, that probability has now climbed to about 70%. The move indicates that traders adjusted rate expectations immediately after the PPI report. The figures cited in the report refer specifically to market-implied odds from futures pricing and the annual increase in producer prices through August.
Markets raised their bets on a Federal Reserve rate increase at next week’s meeting after the release of the first key inflation report of the week, according to Odaily.
The report showed that U.S. producer prices rose 5.4% over the 12 months through August.
Before the data was released, markets had priced in about a 65% chance that the Fed would deliver a 25-basis-point rate hike at its Sept. 15-16 meeting. Based on pricing in Chicago Mercantile Exchange (CME) federal funds futures contracts, that probability has now risen to about 70%.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
