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Monday, August 20, 2007

Fed Fund Probabilities

by Calculated Risk on 8/20/2007 07:49:00 PM

Click on graph for larger image.

Source: Cleveland Fed, Fed Funds Rate Predictions

The market expects a rate cut by the September meeting. It may even happen sooner, now that the Fed has shifted their bias, from being more concerned about inflation, to being more concerned about growth. The shift in bias was the big news in the Friday announcement, as the Fed prepared the market for a possible rate cut.

Check out the probabilities for the October and December meetings too. The "R" word is back.