This is a syndicated repost courtesy of Confounded Interest - Online Course Notes For Financial Markets. To view original, click here. Reposted with permission.
According to The Fed Funds futures data, the implied probability of an increase in the Fed Funds target rate at the December meeting is 52%. And the implied probability has been rising over the past month, despite the dismal economic data.
Liquidity moves markets!Follow the money. Find the profits!
The US Treasury yield curve has risen by over 20 basis points for the 5 and 7 year Treasury yields, indicating that the market assessment of a rate increase in rising.
The Federal Reserve (aka, the SS Minnow) is likely going to launch its tour.
Here are The Fed’s Stanley Fischer (Little Buddy), Janet Yellen (the Skipper) and William Dudley (the Professor) pondering just what went wrong.
Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.