September Fed rate hike fears look overblown as the probability stands at just 58%, not 90%
Market analysts suggest that fears of a September Federal Reserve rate hike are currently overstated, as current pricing indicates only a 58% probability. Despite recent hawkish rhetoric from officials, experts argue that the market is not yet treating a hike as a certainty.
Why it matters
Accurate assessment of Fed policy is critical for investors in volatile assets like Bitcoin and gold, which are sensitive to interest rate fluctuations.
But those fears, at least as reflected on social media, appear overblown looking at how the CME's Fed funds futures are actually pricing the possibility. For bitcoin and gold, this means scope for continued ascent following August’s 23% and 10% gains.
The article relies on market data from the CME FedWatch tool and quotes multiple financial experts to provide a balanced view of macroeconomic expectations.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in