Investors are increasingly betting on a 75-basis-point hike by the Federal Reserve at its July meeting, after almost two-thirds had predicted an increase of 100 basis points only a few days prior.
During the week starting July 11, the markets briefly anticipated that the central bank would raise interest rates by a full percentage point.
According to CNBC, economists are now expecting the Federal Open Market Committee (FOMC) to proceed with the smaller policy option by raising interest rates by three-quarters of a percentage point at its meeting on July 26–27.
Central bank policymakers admitted that they were comfortable raising rates by 75 basis points at the upcoming meeting, but still left the door open for a larger hike….