Insights

Market uncertainty on Fed rate decision persists as yields rise

exchange681 week ago

0 0 1 minute read

Quick Take

The market uncertainty of what the Federal Reserve will do next is obvious, as expectations are now almost a 50/50 split between a pause or a 25bps rate hike at the upcoming FOMC on May 3.
But it gets even more uncertain as we go through the futures of the fed funds rate.
In June, the market is pricing in three different options a cut, hold, and a hike simultaneously. A pause is the most favored option currently.
Today, the rate across the yield curve has spiked from US03M to US30Y.
Even with stubbornly high core inflation, the fed may opt to pause due to the financial instability.

Analyst

James Van Straten

Former Lead Analyst at CryptoSlate

James fervently appreciates data, technology, and trend-spotting. As a tech and liberty maximalist, he hails Bitcoin as the 21st century’s paramount invention.

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