Market Expectations Dropping for Future Interest Rate Hikes

According to a recent Bloomberg article, market expectations for a June interest-rate increase from the Federal Reserve have fallen to just 47%, down from 66.5% only a week ago, based on Bloomberg's World Interest Rate Probability data.

As consumer prices fell in March for the first time in over a year and employment data came in much weaker than expected, the possibility that inflation will move higher has disappeared, according to Bloomberg.

"If the data stay like this, I don't think they hike at the June meeting," Ethan Harris, an Economist at Bank of America Merrill Lynch, said on Bloomberg Television. "Bonds are reasonably priced, but there are some risks to the equity market."

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