Expectations of interest rate hikes this year are ruled out 🤝
Despite strong employment and price data, interest rate traders have all but ruled out any rate hikes for the rest of the year, with just an 8% chance of a hike in November and less than a 25% chance of a December hike. In addition, the University of Michigan's consumer confidence index plummeted 5.1 points to 63 in October, significantly lower than expected and the largest decline in 15 months. The current situation index fell to 66.7 from 71.4 last month, while the 1-year and long-term Inflation expectations echoed the rebound in CPI, reaching 4-month highs (3.8% and 3.0% respectively).
