Quote from THE-BEAKER:
try deducting them from 100 that may help.
also consider the settlement of the fed funds future against the fomc decision day.
also consider the eurodollars contracts for the same months.
by working this out you will have the implied forecasted interest rate.
ok so
95.8200 fed funds jan 08
95.275 Eurodollar jan 08
thats 4.18 which is close to the 4.25 target rate for most of jan until the fomc decision jan 29/30. but even with a rate cut of another 25 bps for the last 2-3 days of jan i dont get to that number
a for the eurodollar, i have no idea why it is where it is. dont even know where to start about that one