vendredi 3 avril 2015
Traders Are Now Expecting the Fed to Raise Rates Later Than Ever Before
Posted on 00:22 by nice news
Ahead of the March jobs report, traders are expecting the Federal Reserve to raise interest rates later than ever before.
As of Wednesday's close, Federal funds futures implied liftoff from zero in the final week of November, according to an index maintained by analysts at Morgan Stanley. That's been pushed back from September as of two weeks ago, before the policy-setting Federal Open Market Committee's March meeting.
Why the delay? Fed officials have expressed concern about the effects of the strong dollar, which is weighing on the outlook for economic growth and inflation. Some policy makers also cut their estimates of the unemployment rate below which price increases should accelerate, implying the economy is further away from their goals than previously thought.
Moreover, economists say the pace of job gains -- the U.S. economy has added 275,000 workers each month on average over the past year -- probably needs to come down to reconcile with a slower pace of underlying economic growth.
As of Wednesday's close, Federal funds futures implied liftoff from zero in the final week of November, according to an index maintained by analysts at Morgan Stanley. That's been pushed back from September as of two weeks ago, before the policy-setting Federal Open Market Committee's March meeting.
Why the delay? Fed officials have expressed concern about the effects of the strong dollar, which is weighing on the outlook for economic growth and inflation. Some policy makers also cut their estimates of the unemployment rate below which price increases should accelerate, implying the economy is further away from their goals than previously thought.
Moreover, economists say the pace of job gains -- the U.S. economy has added 275,000 workers each month on average over the past year -- probably needs to come down to reconcile with a slower pace of underlying economic growth.
Traders Are Now Expecting the Fed to Raise Rates Later Than Ever Before
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