Fed funds futures traders are pricing in a 21.9% chance that the Federal Reserve’s main interest-rate target will get to at least between 5.5%-5.75% by November. As of Thursday, traders saw a 20.2% chance of a quarter-of-a-percentage point move for that month, up from 15.9% a day ago, after factoring in a similar increase in July, according to the CME FedWatch Tool. They also saw a 1.7% chance that the fed funds rate target could get to between 5.75%-6% in November, up from 0.9% on Wednesday. The adjusted expectations came as four central banks in Europe delivered a flurry of rate hikes on Thursday and Fed Chairman Jerome Powell concluded two days of Congressional testimony. A 5.5%-5.75% range on the fed funds rate target would be in line with the median estimate of Fed forecasts, released last week.
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