Saturday, January 12, 2008

Eyes on the Fed

According to options data analyzed by the Cleveland Fed, the Fed Funds rate will soon be coming down to 3.75 and maybe even 3.5 percent, from the current target of 4.25 percent. (Click on the graph to enlarge and see how the implied probabilities have changed over time.)

The next FOMC meeting is scheduled for January 29-30.