Interest-rate futures show traders now assign an 11% probability that the
Federal Reserve will raise rates this year, up from 5% earlier in the day and 0%
on Tuesday, according to CME Group data, while the chance of a rate cut is
around 2%. The shift followed hawkish signals from Fed officials on Wednesday.
The Fed kept policy statement language suggesting a cut remains more likely than
a hike, but three Fed presidents objected to that wording. Fed chair Jerome
Powell indicated the language could be removed at the next meeting as inflation
remains elevated.
