CME FedWatch: 66% Probability of 25 Basis Point Fed Rate Hike in September

Odaily News According to CME FedWatch tool data, as of 11:40 AM ET on August 31, there is a 66% probability that the Federal Open Market Committee (FOMC) will raise the federal funds rate target range by 25 basis points to 3.75%-4.00% at its September meeting.

The Federal Reserve has been raising interest rates since 2022 to address rising inflation. Fed Chair Kevin Warsh stated at a recent Jackson Hole symposium that the Personal Consumption Expenditures (PCE) price index has risen 3.7% over the past 12 months and 4.1% over the past six months, both above the 2% target, emphasizing that controlling prices should be the current top priority.

Barclays expects the Fed to raise rates twice more this year, in September and December, for a cumulative increase of 50 basis points, bringing the federal funds rate target range 50 basis points higher than current levels. (Forbes Digital Assets)