With the global financial market rout continuing, the markets are fast to pare back pricing of Fed hikes. We’ve pointed that out in out latest weekly report already. And the situation worsen quickly this week.
Fed fund futures are now pricing in less than 80% chance of a June hike to 1.75-2.00%. And it was 100% just a week ago.
For another hike to 2.00-2.25% in September, fed fund futures are pricing in only 40% chance. And it was over 80% a week ago.
Now, it seems a total of four hikes this year is out of the question. And even a total of three is in doubt.
