Trump's Interest Rate Plea Falls Flat as Markets Bet on Higher Rates

US President Donald Trump is calling for lower interest rates to boost economic growth, but financial markets are betting on higher rates. The Federal Reserve's policy meeting this week has traders increasingly expecting interest rate hikes.

According to the CME FedWatch Tool, which tracks market expectations for Federal Reserve interest rate decisions using pricing in federal funds futures contracts, traders currently see a 33.7% probability of a rate hike at the July FOMC meeting. The odds climb significantly to 79.4% for September, 85.8% for October, and 90.6% by December.

Trump spoke to reporters aboard Air Force One while traveling to Michigan on Monday, saying 'Rates should be lowered. This country could be at eight percent, nine percent, 10 percent, 12 percent GDP. That's what it should be.'

The current federal funds target range currently stands at 3.50%, 3.75%. The Fed will announce its interest rate decision on Wednesday, July 29, at 2:00 p.m. ET.