CME FedWatch data show a 92.8% probability the Fed holds rates steady in October, while December pricing shows a 74.8% chance of a cumulative 25bp hike and a 19.5% chance of a 50bp hike.
Markets are now leaning toward further Fed tightening rather than easing, with a hold priced almost certainly for October and a hike increasingly likely by December. Pricing in further rate hikes tends to support US yields and the dollar, while weighing on Gold and rate-sensitive growth stocks.
Bloomberg·10/19, 07:55 PM
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