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Futures Still Call For A May Rate Hike

Posted By Barry Ritholtz On September 11, 2003 @ 3:40 pm In Finance | Comments Disabled

Fed funds futures and Eurodollar futures continue to price in only a marginal (about 4%) chance of a rate hike at next week’s FOMC meeting. Both contracts, however, see about a 100% chance of a tightening at the early May meeting.

Ask yourself: Is this a device to predict the future, or is it a future discounting mechanism?

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