Bets on central bank rate hike rise to nearly 40 percent, Gregory Daco notes

Bets on central bank rate hike rise to nearly 40 percent, Gregory Daco notes
Investors boost central bank rate hike bets

Gregory Daco observes that investors have recently increased their wagers that the central bank may raise interest rates at its upcoming meeting. At one point last week, the probability of a rate hike was estimated by the market to be close to 40 percent.

Daco has recently commented on inflationary pressures from technology, noting that AI-fueled demand could be a key factor impacting U.S. inflation and prompting further rate hikes. He has also reported that private-equity assets stuck in zombie funds have reached a record high, pointing to ongoing liquidity concerns. These observations provide further context to expectations for potential central bank policy moves.

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