Tuesday, 17 October 2017


“Fed expected to dampen rate rise expectations”

Posted by
December 14, 2010
in Blog

“The central bank is not expected to signal any shift away from its intention to buy $600 billion in government debt but markets are already bringing forward expectations of when the Fed may start to raise interest rates.

Eurodollar futures fell to three-month lows this week and two-year Treasury yields are at their highest level in five months.

“We think the increase in Fed hike expectations is overdone, the market has priced in a possibility of hikes as early as the second half of 2011,” Barclays Capital strategists said.

“The FOMC is likely to reiterate its message of extremely easy policy … and that could be a catalyst for reversal of some of the recent outsized moves.”” Read more.

“Fed expected to dampen rate rise expectations”
Kirsten Donovan
Reuters, December 14, 2010.

Image by Salvatore Vuono / FreeDigitalPhotos.net.