Chart Of The Day: In Warsh's Wake, Hike Odds Spike

The article highlights a sharp three-month shift in expectations for the September Fed meeting, centered on a 25-basis-point rate hike or equivalent cut. The key message is that rate expectations have moved materially, indicating a significant change in market positioning around monetary policy. This is market-wide relevant because it reflects shifting views on the Fed’s next move and its impact on rates and risk assets.

Analysis

The article highlights a sharp three-month shift in expectations for the September Fed meeting, centered on a 25-basis-point rate hike or equivalent cut. The key message is that rate expectations have moved materially, indicating a significant change in market positioning around monetary policy. This is market-wide relevant because it reflects shifting views on the Fed’s next move and its impact on rates and risk assets.