by Calculated Risk on 9/16/2008 10:28:00 AM

Since the Fed is meeting today, here is the latest Fed Fund probabilities from the Cleveland Fed.

Click on graph for larger image in new window.

Until the last couple of days market participants anticipated no change in the Fed Funds rate in Septemeber. Now, because of recent events, there is significant uncertainty.

The Fed will probably leave rates unchanged (although a 50bps cut is possible), but the wording of the announcement will probably show more concern about the slowing economy and credit markets, and less concern about inflation.