100% priced in for a Fed Dec hike - ANZ

Analysts at ANZ explained that the market is now pricing nearly 100% odds of a Fed hike in December, but opinions differ about where US monetary policy goes thereafter.

Key Quotes:

"Price action is at odds with St Louis Fed President Bullard who said overnight that he hasn’t changed his economic forecasts after the election, that he doesn’t see the economic regime changing in 2-3 years, and that he continues to predict only one more 25bp rise, probably in December.

While that is only one opinion, it is interesting in that it suggests the FOMC will want to wait and see what the new Trump administration will implement fiscally before changing their forecasts and the December dot points may not be adjusted higher. Yellen’s testimony tomorrow will be interesting."