off-the-wire

Markets begin eyeing a Fed rate hike around the turn of the year

Kitco Media
By Reuters
Published:
Updated:
Reuters
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May 15 (Reuters) - Interest rate futures prices fell ​sharply on Friday, ‌reflecting a growing conviction among bond market ​investors that stiff ​inflation will push the ⁠U.S. Federal ​Reserve to raise interest ​rates late this year or in early 2027.

The ​probability that ​the Fed's benchmark interest rate ‌would ⁠be 25 basis points higher by January's Federal Open ​Market ​Committee ⁠meeting were up to around ​60% and a ​hike ⁠as early as December was seen ⁠as ​a coin ​toss, according to CME's ​FedWatch.

Reporting By Dan Burns

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