No more rate hikes: Markets believe the Fed rate pause is nigh
The market is pricing in no more rate hikes this year, with less than a 50% chance of 25bps hike in May
This article was published 3 years ago. Some details may no longer reflect current market conditions or recent developments. If you spot anything that needs an update, contact us.
Quick Take
- Chances of any more rate hikes seem to have disappeared after the recently reported weak U.S. macro data.
- A pause is now the firm favorite for the next two meetings, with roughly 75bps rate cuts throughout the year.
- The market believes the US rates will end the year at 4-4.25%.
- Australia's Central Bank joined Canada in “pausing” interest rates.
- Liquidity is drying up; banks are reluctant to lend while the economy slows down. These could be the biggest headwinds that Bitcoin would face.
