Fed Rate Hike Probability Spikes to 30% Ahead of July Meeting

The Federal Reserve's upcoming monetary policy meeting has sent interest rate futures market into a frenzy, with a 30% probability of a 25 basis point rate hike in July.

This diverges from most macro forecasts, which still lean towards keeping rates unchanged. Economists believe the existing data is insufficient to prompt an immediate shift to rate hikes in the July meeting.

The interest rate futures market, represented by CME FedWatch, merges oil prices, employment, and hawkish statements into a probability of 'the Fed may need to tighten again.'