Fed Funds Futures See 90% Chance Rates Stay Steady
By Kristina Zurla Landgraf • Jun 23rd, 2008 • Category: Market UpdatesTuesday marks the start of the two-day Federal Open Market Committee meeting June 24-25. A few days prior to these Fed policy meetings, CME Group posts a “Fed Watch” update reflecting where the market thinks rates are headed. Based upon the June 20 market close, the 30-Day Federal Funds futures contract for the July 2008 expiration is pricing in a 10 percent probability the FOMC will raise the target rate by at least 25 basis points. So that’s 90 percent chance the rate will stay steady at 2 percent. Expect an announcement from the Fed when the meeting concludes around 1:15 p.m. CT Wednesday.
