Traders of futures tied to the Federal Reserve’s policy rate have stuck to their bets of a quarter percentage point interest rate hike this week.
It caps a tumultuous week in which money market pricing experienced wild swings, with predictions of a 50 basis point move jettisoned after the collapse of two large regional U.S. banks prompted emergency action from the Fed and other regulators, and rates seen unchanged at one point, before traders by Thursday once again coalesced around a 25 basis point hike as fears of a new global banking crisis abated.
