First posted 08/12/09

The Fed funds futures market is now pricing a 25bp rate hike in June 2010 because of the improved US unemployment number. I still can’t see this happening — see yesterday’s post about curve flatteners. Both Ben Bernanke and William Dudley are signalling that there is no argument for rate hikes any time soon. Barring some unforeseen event, I can’t see the Fed funds rate rising in 2010.

Hat tip: Calculated Risk .