Will the Fed raise the fed funds rate by at least 75 bps (0.75%) in December?
Will the Fed raise the fed funds rate by at least 75 bps (0.75%) in December?
49
1kṀ5730
resolved Dec 14
Resolved
NO

At each of the Fed's last 4 meetings, they've raised the fed funds rate 75 bps (0.75%). How much will they raise at their next meeting in December? Resolves YES if they raise the rate by at least the amount specified in the title, otherwise NO.

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predictedNO 2y

Someone should make a market for the rate change in Feb 2023...

predictedNO 2y
predictedNO 2y

Those that are long, do you think that the next CPI will be so devastating that they will change their minds?

predictedYES 2y

@MP I think people underestimate Fed desire to get a handle on the issue

predictedNO 2y

@KevinBurke Fed already said it's time to slow down. 50bps is still pretty significant and it's just 45 days. They will want to be more measured. Even though they are willing to overtighting, they don't want to.

After the CPI, if it isn't super hot, this market should trade at a mid single digit

predictedYES 2y

@MP sure, I just think 11% is too low of a probability

2y

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2y

Another, more liquid market is trading at 85% no https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

2y

I expect so. Their political incentives are strongest for hitting inflation - Fed mandate, plus the administration would be pressuring them in that direction as well. The consequences for debt service are longer term, and presumably the blue team expects to be able to do some brinkmanship with it (or blame the mess on the red team if they lose the midterms).

Will the Fed raise the fed funds rate by at least 75 bps (0.75%) in December?, 8k, beautiful, illustration, trending on art station, picture of the day, epic composition

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