CME FedWatch shows 69.4% odds Fed holds rates in September

Federal Reserve rate expectations shifted further toward a pause after weaker U.S. consumer spending data. CME FedWatch data showed on Aug. 14 that markets were pricing a 69.4% probability the Fed would keep rates unchanged in September and a 30.6% probability of a 25-basis-point increase. The move followed a July U.S. retail sales report showing a 0.6% month-on-month decline, the largest drop since May last year and below market expectations for a 0.1% gain, prompting traders to further trim bets on additional rate hikes.

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