And Fed Fund Futures Awake

Major move in Fed Fund futures today, with the implied probability of a rate hike to 1.25% by November 2010 nearly doubling to 14% from 8.1%. In fact major move to the right across the spectrum, as expected Fund rates at 1% or higher surging by over 50% and now coming it at 45.4% compared to 31% as recently as yesterday. The inflation hawks case just got stronger by about 50% as well. Yet with trillions more in bad real estate assets on bank balance sheets still needing Fed purchases, the Chairman is truly between a rock and a hard place.