Whenever I read news articles on specific topic (interest rates ) especially before the fed meeting I see some titles stating that the market is betting/pricing for example 0.5% or 1% rate move ,and I wonder how do they determine that what instruments or indicators they use to help them calculate the rate move.
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1$\begingroup$ quant.stackexchange.com/questions/18890 quant.stackexchange.com/questions/31563 quant.stackexchange.com/questions/40484 quant.stackexchange.com/questions/49973 quant.stackexchange.com/questions/68970 quant.stackexchange.com/questions/69836 marctomarket.com/2015/09/… $\endgroup$– Dimitri VulisCommented Jun 19, 2022 at 16:43
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1$\begingroup$ quant.stackexchange.com/q/49973/54838 as well $\endgroup$– AKdemyCommented Jun 19, 2022 at 16:43
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1$\begingroup$ Just adding that the marctomarket critic of Bloomberg WIRP no longer applies because Bloomberg did a massive overhaul of its WIRP tool based on these critiques. The link I added has an answer from Mike Cassidy, who was the product designer of WIRP at the time of the change. The answer and screenshot in the question refers to the new WIRP tool. Interesting side remark, he also used to work as the team lead for FRED data and was the co-creator of the excel API of FRED, a product many people love to use. $\endgroup$– AKdemyCommented Jun 19, 2022 at 16:56
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1$\begingroup$ Thanks @AKdemy , I'll remember the next time someone asks the same question. You might also like ft.com/content/4258daec-b9b0-38bd-9b17-e3e0a9a7a612 $\endgroup$– Dimitri VulisCommented Jun 19, 2022 at 18:33
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1$\begingroup$ Thanks @Dimitri Vulis. That is a good article, and the main point that Bloomberg assumes a 25bps change still applies to the default settings. However, since the tool changed, you can actually select overrides and manually change this as you see fit. I did some work during the change on functionality to showcase the main difference and the impact on its results. I think I may be able to find this somewhere in case anyone is interested. $\endgroup$– AKdemyCommented Jun 19, 2022 at 18:50
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