Fed set to hike rates despite pressure

Bond traders expect the Federal Reserve to raise interest rates on Wednesday. Interest-rate swaps tied to Fed meeting dates show a more than 90% chance of a quarter-point increase. This would lift the benchmark rate from its current 3.5%–3.75% range. That move equals about 23 basis points of tightening. Interest-rate swaps are financial contracts traders use to bet on future rate changes. Kitty Richards, a senior fellow at the Groundwork Collaborative, told Bloomberg's Balance of Power that it will be "extremely difficult" for the Federal Open Market Committee (FOMC) not to raise rates. The FOMC is the Fed's policy-making group. The Fed's rate decision is due Wednesday.