Fed-funds futures now show 67% chance of a 100-basis-point interest-rate hike in July


Traders of federal funds futures rapidly readjusted their expectations for the size of the Federal Reserve’s anticipated next rate hike on July 27, by boosting the likelihood of a 100-basis-point hike to 67% after Wednesday’s hotter-than-expected June reading of the consumer price index. That’s up from 7.6% on Tuesday, according to the CME FedWatch Tool, and would lift the fed funds rate target to between 2.5% and 2.75%. The chance of a full-percentage-point hike continued to rise aggressively as Wednesday’s trading session wore on. Meanwhile, traders see a shrinking likelihood of a 75-basis-point rate hike in two weeks,…

This article was originally published by Marketwatch.com. Read the original article here.

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