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Divergence tracker

Fed vs ECB

Compare market-implied probabilities and forward rate paths for the Federal Reserve and the European Central Bank. A growing divergence often signals shifting global macro expectations.


Fed pricing
-14 bps
cumulative expected change
ECB pricing
-48 bps
cumulative expected change
Divergence (Fed − ECB)
+34 bps
Fed is priced more hawkishly than ECB

Most-likely paths

Cumulative expected changes by meeting

Fed most-likely path
Most-likely outcome at each upcoming meeting, chained in order.
Cumulative pricing
-14 bps by Dec 9
FED
Jun 17
-25bp
55%
Σ -14bp
→
FED
Jul 29
-50bp
100%
Σ -64bp
→
FED
Sep 16
+50bp
100%
Σ -14bp
→
FED
Oct 28
-50bp
100%
Σ -64bp
→
FED
Dec 9
+50bp
100%
Σ -14bp
ECB most-likely path
Most-likely outcome at each upcoming meeting, chained in order.
Cumulative pricing
-48 bps by Dec 17
ECB
Jun 11
Hold
56%
Σ -11bp
→
ECB
Jul 23
-25bp
61%
Σ -46bp
→
ECB
Sep 10
Hold
92%
Σ -48bp
→
ECB
Oct 29
-50bp
100%
Σ -98bp
→
ECB
Dec 17
+50bp
100%
Σ -48bp

Implied rate curves

Forward path side by side

Implied policy-rate path
Federal Reserve. Expected rate at each upcoming meeting, derived from today's probability distribution.
Implied policy-rate path
European Central Bank. Expected rate at each upcoming meeting, derived from today's probability distribution.

Cumulative expected change = Σ (pi × Δi) over all upcoming meetings. Positive = rate hikes priced in; negative = cuts. See methodology.