The odds that fed funds futures will face a 1 percent interest hike, according to the CME Fed Watch Tool, surged to nearly 80 percent on July 14, a massive jump over earlier expectations.
Inflation rates hit their fastest pace since 1981 in June, surging 9.1 percent higher from a year earlier and 0.5 percent more than May’s record of 8.6 percent.
With inflation showing no signs of slowing down, many expect the Fed to aggressively raise rates at its upcoming July 26-27 Federal Open Market Committee meeting. CME’s Fed Watch Tool reported that the chance for a 100 basis point rate hike at the end of July rose to 78.6 percent, up from 7.6 percent on July 12, and 58.4 percent on July 13….