Bullish

Fed September 25bps Hike Probability Reaches 67.2% Per CME Data

2026-08-04 06:02:44

CME FedWatch indicates a 67.2% chance of a 25bps rate hike in September, with October scenarios showing increased volatility expectations for cumulative hikes.

Woofun AI data shows that CME FedWatch probabilities assign a 67.2% likelihood to a cumulative 25 basis point interest rate increase by September, while the chance of rates remaining unchanged stands at 32.8%. For October, the probability of no change drops to 23.3%, with a 57.3% chance of a 25 basis point cumulative hike and a 19.3% chance of a 50 basis point cumulative increase.

WOOFUN AI

Impact Assessment · Quick Read

The market is pricing in a significant probability of tightening policy by September, shifting away from a hold stance. The emergence of a non-trivial probability for a 50 basis point hike by October suggests traders are anticipating potential acceleration in monetary policy adjustments. This shift may increase volatility in rate-sensitive assets as expectations for cumulative tightening solidify.
Generated by WOOFUN AI · For reference only, not investment advice

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