WSJ Fedwatcher Jon Hilsenrath is out with his latest and he writes about the diminishing probabilities of a rate hike before mid-2015:
It started with the weak employment report on Jan. 10. Before the report, traders expected the fed funds rate to average 0.45% in June 2015. That estimate is based on price movements in the June 2015 fed funds futures contract. Put another way, traders saw a high probability that the Fed would start a rate hike campaign by mid-2015. Now the expected fed funds rate in June 2015 is 0.265%,
