Out Of The Blue, March Rate Hike Odds Soar To Cycle Highs

Having drifted flat for weeks at around a 1-in-3 chance – despite endless jawboning from The Fed – March rate hike odds have suddenly surged higher today (to up to a 50% probability).

Dallas Fed’s Kaplan said this morning that a rate increase should happen sooner than later, adding that “[The Fed] wants to prevent a situation where we fall behind the curve.” As Reuters notes this is entirely consistent with his and colleagues’ recent comments, but somehow strikes a chord on otherwise uneventful day.