Traders Expect A 25 Bps Hike At The Upcoming Fed Meeting
On April 27, U.S. reported that Pending Home Sales declined by 5.2% month-over-month in March, compared to analyst consensus of +0.5%. On a year-over-year basis, Pending Home Sales were down by 23.2%, which is not surprising as the Fed raised rates aggressively.
FedWatch Tool indicates that there is a 84.8% probability of a 25 bps rate hike at the next meeting. Traders expect that Fed will continue to raise rates despite problems in the regional banks sector. The federal funds rate is expected to decline from the peak of 500 – 525 bps to 450 – 475 bps by the end of the year.
