London 19/09/2022
The dominating scenario is a 0.75% interest rate hike on Fed’s decision on Wednesday.
Any surprise decision (there’s a 20% probability for a 1% increase) may cause huge volatility in the markets, a strengthening of the US dollar, and further sharp correction to the stock market.
It is a methodology based on 30-Day Fed Fund futures prices calculates the probability of FOMC rate moves for upcoming meetings.
Source: FedWatch tool
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