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> When it is said the fed funds futures are predicting an X% chance of a y
> basis point hike at the next fed meeting, can someone tell me exactly how
> that percentage is determined? And I presume no consideration is given to
> the possiblity the rate could be changed between meetings?
There is a very good explanation, "How to Calculate the Odds of a Change in
the Fed Funds Rate" at http://www.biancoresearch.com/SR2v1.pdf
--Chris Slaybaugh
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