Tuesday, February 07, 2006
5.0, here we come!
Some economists worry about the extent of a possible inversion of the US yield curve. As of now, 10Y-2Y is inverted, but 10Y-Fed funds is not.
Carlson-Craig-Mellick estimates are a way of determining the implicit probability as priced in by options on Fed Funds futures. These estimates tell us that there's a 50 percent probability of a rate hike to 5.0 percent at the May FOMC meeting.
This is all from one of my favourite economic blogs, visit it here:
Macroblog.
Carlson-Craig-Mellick estimates are a way of determining the implicit probability as priced in by options on Fed Funds futures. These estimates tell us that there's a 50 percent probability of a rate hike to 5.0 percent at the May FOMC meeting.
This is all from one of my favourite economic blogs, visit it here:
Macroblog.
