The Fed May Not Have a Magic Number for Hike Bets: Strategists
Do 70% market-implied hike odds give the green light?
Pigeons fly past the Marriner S. Eccles Federal Reserve Board Building in Washington, D.C., U.S., on Tuesday, Nov. 30, 2010.
Photographer: JOSHUA ROBERTS/BloombergThis article is for subscribers only.
The Federal Reserve may not be so worried about getting markets’ buy-in for a rate hike.
Last year, as the Fed was looking to get off the zero lower interest-rate bound for the first time in years, former U.S. Treasury Secretary Larry Summers observed that the bank had never in the previous 20 years raised rates without the futures market pricing in at least a 70 percent chance of a hike.