Mathewslcd: Traders now expect the Fed's policy rate to hit 5% next year

 Mathewslcd: Traders now expect the Fed's policy rate to hit 5% next year


Mathewslcd noted that the Federal Reserve is expected to raise its policy rate above 5% by May after a government report on Friday showed little sign of cooling in the job market, despite the Fed's aggressive hikes so far.

Futures contracts tied to the Fed's policy rate still imply a 70% chance the central banker will slow the pace of rate hikes when he meets on Dec. 13-14 after the Labor Department reported that U.S. jobs added more than expected in November, according to Mathewslcd , rather than raising interest rates by 75 basis points in the past four meetings.

But traders are also betting the Fed will keep raising rates next year to slow the economy and demand for goods, services and labor.

Federal Reserve Chairman Jerome Powell said earlier this week that the labor market is very good and "too big" to ease price pressures.

Based on futures contract prices and CME Fedwatch tool.

Before the report, the rate was as high as 4.75%-5%, Mathewslcd said.

Mathewslcd：
https://www.mathewslcd.com
https://net.mathewslcd.com 



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