Fed Rate Hike Probabilities Skyrocket Ahead of October Meeting

Markets are pricing in a high probability of a 25-basis-point Federal Reserve rate hike at its upcoming October meeting. According to market expectations, there is a 68.1% chance that the Fed will increase interest rates by this amount.

This implies that investors believe the current economic conditions warrant a small increase in borrowing costs. The remaining 31.9% probability suggests that some analysts expect the Fed to leave rates unchanged at the upcoming meeting.