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Fed fund futures point to a rate hike in December

Published 08/08/2016, 11:33 AM
Updated 08/08/2016, 11:33 AM
© Reuters.  Financial markets put the possibility of a Fed rate hike this year back on the table

Investing.com – In a move started after last week’s publication of the better-than-expected July jobs report, financial markets began on Monday to once again contemplate the possibility of a rate hike by the Federal Reserve (Fed) at the end of the year.

The odds had increased after the stellar jobs creation released on Friday, but Fed fund futures continued to ratchet up the possibility, passing the 50% threshold on Monday, with odds of 51.4% of a hike in December, compared to just 43.4% at the close on the final trading day of last week.

The chance for a move in September had also ticked up slightly on Monday to 18%, compared to the prior session’s probability of 15%, according to CME Group’s FedWatch tool.

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