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To: BigMoney who wrote (155485)	3/12/2002 3:57:45 PM
From: ild	Respond to of 436258

11:04 AM FED TALK: Fed rate hike expectations have slipped some today, with the May fed funds contract pricing in about a 2-in-3 chance of a 25 basis point rate hike at the May 7 FOMC meeting. That's down from about 68% at Monday's close. As for the June meeting, the July contract is trading at 2.16%, or about a 64% chance that the Fed raises rates another quarter-point in June after an initial quarter-point move in May. That's down from about 76% late Monday. Assuming no move in May puts the odds of a quarter-point hike in June at 100% and the odds of a 50 bps move at about 82%, though two quarter-point moves seem far more likely considering the benign inflation outlook and the Fed's lingering uncertainty about the economic recovery. Rate hike expectations have risen sharply since Greenspan testified before the Senate last week, and traders are likely taking some profits ahead of the Fed Chairman's speech tomorrow. July contract is the likelihood of an initial 50 basis point rate hike at the June meeting bondtalk.com