Money and Financial Markets
Implied yields on Eurodollar futures show that market participants expect a pause in policy tightening in 2006. They may believe that after the rate hikes anticipated for the remainder of 2005 and early 2006, the federal funds rate will be closer to a level consistent with a neutral policy.
Suggested citation: “Money and Financial Markets,” Federal Reserve Bank of Cleveland, Economic Trends, no. 06-01, pp. 05-07, 01.15.2006.