The market is starting to price in more interest rate hikes than the Fed is indicating As inflation escalates, traders are expecting a more aggressive response from the Federal Reserve than policymakers are currently indicating. The market Thursday morning briefly priced in a slightly better-than-even chance that the Fed hikes interest rates three times in 2022 as price pressures increase. In their most recent economic projections, Fed officials indicated a slight tilt to a hike next year, but only one. Traders see a 65% chance of the first hike coming in June, the second as soon as September (51%) and a 51% likelihood of a third move in February 2023, according to the CME’s FedWatch tool. The most recent probability for December 2022 was 45.8%, but it had been above 50% earlier in the morning.
Been seeing good movers in the stock market as well. Now we just need more Vol for our Options Trader friends