After hot CPI numbers, traders price in half-point Fed rate hike
Traders ramped up wagers that the Federal Reserve will raise interest rates more aggressively after inflation once again exceeded expectations, with futures pricing in a more than 50 per cent chance the central bank will boost rates by a half-percentage-point next month for the first time since 2000.
The spectre of increasing price pressures drove money markets to price in a full percentage point of rate increases through July, the equivalent of a traditional quarter-point move at each of its next four meetings, and more than six such moves in 2022.
Bloomberg
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