Likelihood Of Fed Rate Increase Falls With Falling Inflation (Not Until June ’18)

Today’s CPI report revealed that inflation remains ellusive for the US economy at 1.7% YoY, still below The Fed’s target rate of 2%.

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According to Fed Funds futures data, the implied probability of a Fed rate hike doesn’t exceed 50% until June 2018 and after.

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The most likely path of The Fed Funds target rate remains looking like a Carnival Cruise ship.

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