Traders in futures tied to the Federal Reserve’s policy rate are now betting on the Fed’s interest rate hike of half a point due in two weeks, Fed Chairman Jerome Powell said, adding that the tough measures to continue to deliver strong inflation data. may be required.
Implied yields on fed funds futures contracts fell, pointing to a better-than-expected prospect that saw the central bank raise its benchmark target range for its policy rate to 5%-5.25% from its current 4.5%-4.75%. Will increase About 30% chance seen before speech. Futures contract pricing points to consolidating expectations of a move to the range of 5.25%-5.5% by June.