FED Odds for 25 basis or 0 basis point increase
The odds of a 25 basis-point increase in the Fed February meeting jumped to 95% at CME Fed Watch.
Mind you, he didn’t say a pivot was coming and they would cut interest rates. He didn’t mention anything about the handful of companies about to report earnings who are estimating a slower year ahead. He also didn’t mention that the jobless claims number came in lower than the 4-week moving average, meaning the job market is still strong. Wage inflation may be coming down, but the job market is bending and not breaking.The last time the Fed met in December, the market was flirting with its 200-day moving average and was met with the same battle cry the Fed has been giving for months - “higher rates for longer”.Here we are, coming up to the February Fed meeting and the market is once again at the 200-day moving average.
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