Markets bet on Fed rate hikes despite economist doubts
Futures markets signal a 50% chance of a rate hike by December as inflation rises. Analysts suggest the move may be an overreaction to volatile oil prices.
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United States fed funds futures reached 50% odds for a rate hike by December following a sharp bond-market selloff. The 30-year Treasury yield rose above 5% while the 10-year benchmark hit a 15-month high. Investors are pricing in tighter policy despite Federal Reserve officials remaining silent on near-term increases.
