CHART: Markets Are Now Pricing In The Longest Fed Easing Policy Yet

Bank of America’s Rates and Currencies Research team has a note out this morning taking a look at Fed policy.

This chart shows that until now, futures contracts have expected the Federal Reserve to hike rates sooner than they officially project. Now, they’re right in line with Fed forward guidance, expecting no rise in rates until late 2014. 

From the note:

chart

Photo: Bank of America/Merrill Lynch

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.