Despite dismal economic data, traders are suddenly pricing in a considerably higher chance of a rate hike in September…
Interestingly, the market is pricing in around a 40% chance of a hike. Jeff Guindlach noted last night that if rate-hike odds remain below 40%, then September is off the table (as The Fed does not want to shock the markets)…
As a reminder, this is what is happening in the real world…
Perfect time to hike rates.