Probability of Near-Term Rate Hike Plunges

Today’s comments from Fed Chairman Janet Yellen on rates pushed the probability of any near-term rate hike sharply lower.

The implied probability of an April quarter-point hike fell from 11.5% to 4.6%.

Aprilhike

The implied probability of a June quarter-point hike fell from 34.6% to 28.4%.  The probability of a 50bps-hike went in June went from 3.5% to 1.2%.

junehike

 

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