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This sort of fits in with this thread...... It's from TradingMarkets.com
Maybe someone can explain the content note.... Maybe the interest rate hikes
can be forcast............
............from TradingMarkets.com..........
"While all major media outlets
are touting the Fed's rate cut as a "surprise," the federal
funds futures contract traded at the Chicago Board of Trade
has clearly been indicating expectations of a 50 basis-point
cut, pricing in a nearly 100% chance of such an occurrence by
the end of the month, the time of the Fed's regularly
scheduled FOMC meeting on interest rate policy.
Where do we go from here? A look at this valuable predictor
of the Fed's policy provides some interesting clues. This
morning, the February contract (FFG1) is now pricing in an
84% chance that the Fed will cut an additional 50 basis
points at its January meeting.
................................................
Further down the road, the June contract is currently showing
a 76% chance of an additional 50 basis point cut, implying
that by this summer the federal funds interest rates will
stand at 5%, down from its current level of 6%. "
....... end of quote.....
I have attatched a gif of the FundRate Futures........ Do any of you have any
information as to how to do this calcuation...???? This just be one of the
few clues that are readily available ...... without getting into somebody's
proprietary trading system.
John
"John T. Nelson" wrote:
> Here we don't agree...
>
> By "stable prices" I don't think
> the Fed had specifically stock prices in mind. I think
> this refers to costs in labour, commodities, goods and
> so forth.
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