Federal Reserve Chair Janet Yellen said she would carefully gauge when to raise rates again as the central bank will have to assess that economic growth is on the right track and labour market conditions are improving after recent economic data pointed to a slowdown in the labour market. She said, “The pace of improvement in the labour market appears to have slowed more recently, suggesting that our cautious approach to adjusting monetary policy remains appropriate.” She also added that Brexit would have significant economic repercussions for the United States.

Let’s take a look at how market is pricing a hike after her comments,

Current FED funds rate stands at 0.25-0.5 percent

• July, 2016 meeting - Market is attaching 88 percent probability that rates will remain at 0.25-0.5 percent, and 12 percent probability that rates will be at 0.5-0.75 percent.
   
• September, 2016 meeting - Market is attaching 67 percent probability that rates will remain at 0.25-0.5 percent, 30 percent probability that rates will be at 0.5-0.75 percent, and 3 percent probability that the rates will be at 0.75-1 percent.
   
• November, 2016 meeting - Market is pricing 66 percent probability that rates will remain at 0.25-0.5 percent, 31 percent probability that rates will be at 0.5-0.75 percent,  and 3 percent probability that the rates will be at 0.75-1 percent.

• December, 2016 meeting - Market is pricing 47 percent probability that rates will remain at 0.25-0.5 percent, 41 percent probability that rates will be at 0.5-0.75 percent, 11 percent probability that the rates will be at 0.75-1 percent, and only 1 percent probability that the rates will be at 1-1.25 percent

The market is still away from pricing a hike in 2016 and not pricing one until January next year. However, there could be some drastic changes in next few days once the British referendum is done with.