Though analysts warned prior to Donald Trump's presidential victory that the likelihood of a rate hike would diminish should the real estate mogul win, as of late traders project there is a 94% chance of a rate hike come December.
That’s the highest level seen this year, and a lot of it has to do with Trump’s spending plans, which are expected to boost inflation and cause the Fed to react with more rate hikes than anticipated. Trump is also rocking the bond market, with his win pushing Treasury 10-year note yields up seven basis points to 2.29%, Bloomberg reports.
The projected chances of a hike to short-term interest rates by December have risen from 68% at the beginning of November to near 100%, and most people now consider it all but a done deal. [Bloomberg]
