Fed funds futures traders price in small chance of a 100 basis point Fed rate hike in three weeks

Fed funds futures traders now see a 4.6% chance of a jumbo-size 100 basis point rate hike at the Federal Reserve’s July 26-27 policy meeting, following a robust June U.S. jobs report released on Friday. That’s up from zero chance over the past month, according to the CME FedWatch Tool. While the June jobs report made a 75 basis point rate hike almost certain for later this month, strategists said the market is also comfortable pricing in a “non-zero” chance of something more.

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