Fed Rate Hike Odds Rise to One-Third Amid Energy Price Surge

The Federal Reserve's July rate hike odds have risen to about one-third, as rising energy prices and hawkish Fed policymakers' tone keep inflation risks in focus. Recent speeches from key officials have underscored concerns over high inflation, with Fed Governor Lisa Cook stating that 'the risks from high inflation concern me more at this time.'

She noted that the 12-month price index rose 3.7% through June, 1.7 percentage points above the 2% target.

Fed Vice Chair Philip Jefferson and Governor Christopher Waller also expressed similar views on inflation risks, with Jefferson stating that 'if actual inflation does not start to cool down soon, it could be appropriate to reconsider our current policy stance.'