Bond Traders See 1-in-3 Chance of Fed Rate Hike as Oil Prices Surge
📡 Bloomberg Markets · 1 min read ·
Part of composite article Oil at $100 Sparks 1-in-3 Odds of a Fed Rate Hike This Week View full article →
Bond traders are bracing for a possible Federal Reserve interest rate hike this week. After a spike in Middle East violence, oil prices and Treasury yields have become more volatile. This has raised new concerns about inflation.
Right now, the market is pricing in about a one-in-three chance that the Fed will raise rates on Wednesday. The conflict has made the economic outlook much less certain.