The CME Group's FedWatch Tool indicates a significant increase in the probability of further Federal Reserve rate hikes. There's now a 45.9% chance of 50 basis points in hikes and a 25.1% possibility of 75 basis points in hikes by the January 27, 2027 FOMC meeting. This suggests a strong market expectation for aggressive tightening to combat persistent inflation, with President Trump's tariff policies cited as a contributing factor 🔗. This development could signal continued pressure on equities and bonds as borrowing costs rise.
0