Fed Fund Futures Before & After Fed's Warsh's Comments - FJElite
Fed's Warsh: This summer's inflation data is better than expected, but do not tell me underlying trends have meaningfully improved.......Have work to do if inflation is not moving to 2% with speed.
Sentiment- Traders now see about a 50-50 chance of a Fed rate hike in September, based on pricing in rates futures.
- US short-term interest-rate futures fall as traders add to bets on Fed rate hike after Fed Chair Warsh speech
Market Reaction
- Initial whipsaw from markets, but not long after DXY strengthened, stock indexes and gold weakened. There was more of a reaction on FX and gold than stocks. Bond yields also rose.
