Fed expected to hike rates again in October; markets now pricing 125 basis points higher than previously expected for 2026.
Macro & Markets ·
Markets are pricing a 53% probability that the Federal Reserve will raise interest rates in October, according to current expectations. Should a hike occur next month, interest rates would end up 125 basis points higher by October 2026 than markets had anticipated a year earlier, when three rate cuts over that period were forecast.