An April rate hike is getting more real
The evidently hawkish tone embraced by the Fed’s representatives this week makes market participants change their attitude to the probability of an interest rate increase planned by the central bank in April.
Really, an upcoming rate hike is being accepted in trading community. For instance, just a day ago only 7% of Forex traders considered the probability of April’s rate hike extremely high, while today up to 14% are convinced that it’s real.
The Fed is expected to announce its another monetary policy decision on April 27, 2 PM Eastern Time.
Frankly speaking, the probability seems quite unlikely for many financial experts. Nevertheless, there’s an obvious upbeat shift in traders’ expectations.
An updated policy statement issued after the March gathering revealed that in general, the Fed is still concerned with today’s global financial as well as economic conditions as well as their potential impact on American economy.
Furthermore, a new set of projections released along with the statement demonstrated an apparent plurality of the Fed’s policy makers. Now they consider two rate hikes compared to four in December.