Fed Funds Future (From You Tube)

This movie gives an introduction to Fed Funds Futures. The followings are to take home:

1)      How are the futures prices calculated from expected Fed Funds Rate?

Answer: Approximately 100-Fed Funds Rate

2)      Where is the Fed Funds Futures Traded?

Answer: Chicago Board of Trade. To read the Fed Funds Futures prices, go to Product=>Interest Rate=>Fed Funds Rate. Website: http://www.cbot.com/

3)      How to read the sentiments of investors and expectation of future Fed Funds Rate?

Answer: Read how the prices of the futures. And read trends.