After rising slightly on Yellen testimony that the market perceived as dovish, Bespoke’s Countdown to Liftoff  indicator of the date the Fed is likely to hike is back to October, 7.4 months from today.  As a reminder, our measure is based on the prices for Fed Funds futures, to which we apply some basic assumptions about the way Fed will raise rates.  For now, it seems that the deflation fears (and fears that the Fed would balk at the idea of raising rates this year) in January have been left in the rear view mirror.

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