May 15 (Reuters) – Prices for interest rate futures fell sharply on Friday, reflecting a growing conviction among bond market investors that strong inflation will push the U.S. Federal Reserve to raise interest rates later this year or early 2027.
The probability that the Fed’s benchmark interest rate would be 25 basis points higher at January’s Federal Open Market Committee meeting was about 60%, and an increase as early as December was considered a coin flip, according to CME’s FedWatch.
Report by Dan Burns
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