(Bloomberg) -- Traders of fed funds futures boosted the amount of easing they expect from the U.S. central bank this year after American President Donald Trump abruptly escalated his trade war with China, announcing new tariffs. More than half a percentage point of reductions is now priced in.
The implied rate on January fed funds futures, an indication of where the market sees the central bank’s key rate at the end of this year, was at 1.615% Thursday. That suggests the market is pricing in about 53.5 basis points of easing in addition to the reduction announced Wednesday.
To contact the reporter on this story: Benjamin Purvis in New York at bpurvis@bloomberg.net
To contact the editors responsible for this story: Paul Dobson at pdobson2@bloomberg.net, Alexandra Harris
