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May Rate Hike Expectations: 35% Bloomberg, 7.2% CME - Mish Talk

On May 2, the Fed meets to set interest rate policy. Bloomberg see its this way....

I believe the Bloomberg forecast is silly but there is no way to prove my assessment. If the Fed does not hike, Bloomberg still had a 65% probability the Fed would not hike, and it will insist it got the forecast right. Even if the Fed does hike, CME had a non-zero (7.2%) chance the Fed would hike. If there was a way to arb the spread, it would likely pay off in spades to do so. Regardless, either CME or Bloomberg is way off on their model. With two days to go before decision time, I strongly suggest Bloomberg is radically wrong. Mike Mish ShedlockZiad Load More Conversations image

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