Title : U.S. interest rates peak seen in six months – futures
- analysiswatch
- Jul 25, 2022
- 1 min read
Jul 25, 2022 03:35AM ET
By: AnalysisWatch
Futures contracts tied to the U.S. Federal Reserve's policy rate suggested Monday that benchmark interest rates will peak in January 2023, compared with February last week.
In addition to peaking a month earlier than previously expected, markets are betting that the target federal funds rate will be about 20 basis points lower at 3.38%, down from 3.59% at the beginning of last week.
The drop in market bets on when U.S. rates will peak followed weak business data Friday that raised fears of a recession.
U.S. Treasury Secretary Janet Yellen said Sunday that a recession is not imminent, but most economic data points the other way, including disappointing PMI numbers in the U.S. and Europe last week.
Investors widely expect the Fed to raise interest rates by another 75 bps when it concludes its two-day meeting on Wednesday.
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