December Rate Hike Odds Drop to 35.9%, Rate Cut Odds 2.6%: No Hike Until June 2018?

For the first time in a long time, CME Fedwatch shows the odds of a rate cut in December rose considerably above zero. Considerable means 2.6%.

by Mish

Yes, that’s a long shot, but cut odds were zero on Thursday, zero a week ago, and zero a month ago.

Moreover, rate hike odds which a week ago were over 53.2% are now down to 35.9%.

May 2018 Rate Hike Odds

No Hike Until June 2018?

Don’t assume stocks will retain an upward bias if the Fed does hold off, or even cuts.

Mike “Mish” Shedlock

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