Fed Funds Futures Pricing In a 22% Chance Of Liftoff In September

Fed funds futures are now pricing in a 22% chance that the Federal Reserve will raise its benchmark interest rate in September for the first time since 2006, and a 0% chance of a rate hike at the July meeting of Federal Reserve policy makers, and only , according to the CME Group's FedWatch tool. Futures markets are also pricing in a 62% probability that rate liftoff will occur at or before the central bank's December meeting. The latest policy statement and projections from Fed policy makers, released Wednesday afternoon, indicated that the pace of rate hikes will likely be slower than the market expected.