Fed Rate Hikes Priced In: Markets Expect Multiple Increases

Investors are increasingly pricing in multiple Federal Reserve interest-rate increases, with at least three hikes expected by June next year.

The Wall Street Journal reports that markets now expect a 25-basis-point increase to be followed by additional tightening, citing former Fed Vice Chair Richard Clarida as saying 'additional hikes will certainly follow' if the Fed raises rates.

A higher-interest-rate environment can have significant implications for risk assets, including cryptocurrencies such as Bitcoin. The key issue for crypto investors will be whether the Federal Reserve confirms expectations for a sequence of rate increases or provides guidance that points toward a different policy path.