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  • Traders bet on end to Fed rate hikes after April US inflation data

    From finance.yahoo.com

    An April inflation reading on Wednesday that was more benign than expected disrupted the modest momentum that had been building for an 11th straight U.S. interest rate hike in June. Futures tied to the Federal Reserve's policy rate rose after the Labor Department report, and now reflect less than a 10% chance that the U.S. central bank will raise its benchmark overnight interest rate from the current 5.00%-5.25% range at the June 13-14 meeting, with the bulk of bets on a pause. Traders earlier on Wednesday had priced in as much as a 25% chance of a rate hike next month. The Consumer Price Index (CPI) rose 4.9% last ... (full story)

Yeah, again...why are they betting on that? The core CPI, which is the metric the FED is looking at, still isn't really changing. Very sticky. The FED literally tells people what they are going to do....no cuts, at the most, a pause and that will be for at least all of 2023 into 2024.

After all of the crap that went on with inflation, do you really think the FED is going to be ahead of the game?
BET is the right word here. lol
Everyone can see the chart, but only a few can actually read it.
Quote
Meanwhile, traders of interest-rate futures piled further into bets that the Fed will start cutting rates in September, with the policy rate seen ending the year in the 4.25%-4.50% range.

Umm with the unemployment rate lowest ever and inflation a tiny bit lower than a year ago, just one year prior to election the Fed is going to start giving up on inflation control and goose up the market sentiment to see S&P 500 close at 4400 by year's end? Good luck.
Fake news
Learn, a forex trader must, unlearn and relearn he will.
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