March rate rise now likely

02 March 2017

 

The probability of an increase in the US official rate, known as the federal funds rate, has gone ballistic in the last week. Prior to Tuesday (US time), markets had about a 1-in-3 chance of a 0.25% rate rise at the FOMC’s March meeting (the FOMC is the US Federal Reserve’s rate setting committee). A look at the US futures trading on Tuesday shows how prices moved suddenly in a...

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