Fed Traders Bet on First Rate Hike in Over Three Years

The Federal Reserve is set to make a crucial decision in September regarding the federal funds rate. Traders are betting on an increase for the first time in over three years, despite President Donald Trump's push for cheaper borrowing costs.

Economists believe that Fed officials will decide between increasing or maintaining rates to combat inflation. The current target range is 3.5% to 3.75%, and prices have been rising faster than worker earnings.

According to CME FedWatch, as of September 13, most traders expect the Federal Open Market Committee to increase the federal funds rate by a quarter-point on September 16.