Markets raise chances for a Fed rate hike following hot inflation report

Market pricing around noon Tuesday implied about a 37% probability of a Federal Reserve rate increase before year-end, as traders moved further away from expecting any rate cuts. The shift reflects a more hawkish stance on policy and tighter expectations for interest-rate direction. This is market-wide news that could affect yields, equities, and rate-sensitive assets.

Analysis

Market pricing around noon Tuesday implied about a 37% probability of a Federal Reserve rate increase before year-end, as traders moved further away from expecting any rate cuts. The shift reflects a more hawkish stance on policy and tighter expectations for interest-rate direction. This is market-wide news that could affect yields, equities, and rate-sensitive assets.