FYI: The market isn’t buying what the Federal Reserve is selling.
The median expectation among members of the Federal Open Market Committee is that the Fed funds rate will be 3.1% at the end of 2019, according to a “dot plot” chart of FOMC members’ calls on rates that the central bank released in June.
Investors beg to differ. The CME’s Fed futures market puts the Fed funds rate significantly lower, at about 2.6% at the end of 2019, according to Bloomberg. It matters because the Fed funds rate—the rate banks charge one another for overnight loans of funds maintained at the central bank—helps shape the short end of the bond-market yield curve.
Regards,
Ted
https://www.barrons.com/articles/investors-just-dont-believe-the-feds-call-on-rates-1535477944?mod=hp_RTA
