Traders Bet on 25-Basis-Point Rate Hike by the Fed by Year-End

Interest rate futures traders increased their bets on Fed rate hikes after Fed Governor Waller said the "easing bias" should be removed from the FOMC statement.

Market pricing shows that traders are now expecting the Fed to raise rates by 25 basis points before the end of 2026. The expectations have been fully priced into the market.

The S&P 500 index trimmed gains to 0.2%, after rising as much as 0.7% at the open; the Nasdaq 100 index also touched intraday lows. Spot silver extended losses to 2%, trading at $75.12 per ounce. Gold futures fell 1%, to $4496.47 per ounce.