But these futures contracts can give investors a sense of what
many think is the direction and speed of rate increases or decreases,
as well as a signal that a Fed that has been on hold is
about to change its policy. In addition, if there is some surprising
news, such as a much stronger or weaker than expected employment
report, the response of the fed funds futures contracts can
indicate to investors how much this new economic report is
changing opinions on the outlook for Fed policy.
many think is the direction and speed of rate increases or decreases,
as well as a signal that a Fed that has been on hold is
about to change its policy. In addition, if there is some surprising
news, such as a much stronger or weaker than expected employment
report, the response of the fed funds futures contracts can
indicate to investors how much this new economic report is
changing opinions on the outlook for Fed policy.
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