Predictions By The Market
Considering the wide impact a change in the federal funds rate can have on the value of the dollar and the amount of lending going to new economic activity, the Federal Reserve is closely watched by the market. The prices of Option contracts on fed funds futures (traded on the Chicago Board of Trade) can be used to infer the market's expectations of future Fed policy changes. One set of such implied probabilities is published by the Cleveland Fed.
Read more about this topic: Federal Funds Rate
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“The Brahmins say that in their books there are many predictions of times in which it will rain. But press those books as strongly as you can, you can not get out of them a drop of water. So you can not get out of all the books that contain the best precepts the smallest good deed.”
—Leo Tolstoy (1828–1910)
“To market ‘tis our destiny to go.”
—Robert Frost (1874–1963)