Odds of Federal Reserve rate hike surge as oil prices rip higher
Investors are increasingly preparing for the Federal Reserve to hike interest rates as oil prices climb.Fed funds futures are pricing in a roughly 82% likelihood that the central bank lifts borrowing costs at its September policy meeting, according to CME's FedWatch tool. A week ago, those odds sat below 53%.The central bank is still broadly expected to keep rates unchanged at the current 3.50% to 3.75% at its gathering next week. That was the fewest claims since 1969, when the U.S. population was 60% of what it is today.
- ▪Investors are increasingly preparing for the Federal Reserve to hike interest rates as oil prices climb.Fed funds futures are pricing in a roughly 82% likelihood that the central bank lifts borrowing costs at its September policy meeting, a
- ▪A week ago, those odds sat below 53%.The central bank is still broadly expected to keep rates unchanged at the current 3.50% to 3.75% at its gathering next week.
- ▪That was the fewest claims since 1969, when the U.S. population was 60% of what it is today.
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Investors are increasingly preparing for the Federal Reserve to hike interest rates as oil prices climb.Fed funds futures are pricing in a roughly 82% likelihood that the central bank lifts borrowing costs at its September policy meeting, according to CME's FedWatch tool. A week ago, those odds sat below 53%.The central bank is still broadly expected to keep rates unchanged at the current 3.50% to 3.75% at its gathering next week. But even then, there's a growing minority planning for an increase: Fed funds futures trading indicates a nearly 38% probability of a quarter percentage point hike, up from less than 12% a week ago.Brent, the global crude benchmark, hit $100 a barrel on Thursday for the first time since late May amid a new round of tit-for-tat attacks between the U.S. and Iran.
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