Economics
Traders Doubt Yellen’s December Resolve as Credibility Attacked
- Futures show 54% probability of interest-rate increase in 2016
- Fed Chair Yellen says most FOMC memebers expect hike this year
Fed's Yellen: Job Creation Is Above Sustainable Pace
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Traders see barely more than coin-flip odds that the Federal Reserve will raise interest rates by December, even as Chair Janet Yellen reiterated Wednesday that most members of its policy-setting committee expect a hike this year.
Treasury yields have fallen across maturities since the central bank left rates unchanged at its Sept. 21 meeting, while signaling that the case to hike had strengthened on brightening U.S. economic data. The bullish comments paired with no policy action left bond traders wondering how good conditions need to be for the Fed to move, particularly as officials pared projections for the future path of tightening.