CME Group FedWatch's December hike probability eased below 90% post-FOMC minutes

After the FOMC published the minutes of its September meeting, the probability of a 25 bps rate hike in December eased to 86.7% from 91.7% according to the CME Group FedWatch Tool.

Although the minutes revealed that many Fed officials saw another rate hike warranted this year, the fact that policymakers also voiced their concerns over the probability of inflation softness not being temporary seems to have hurt the expectations of a rate hike. Moreover, the statement also showed that some officials wanted to delay hikes until inflation was picked up.