Markets keep assuming the Federal Reserve’s next rate hike will be the last

Published May 2, 2023 2:53pm ET



Although investors are in near unanimous consensus that the Federal Reserve will raise the federal funds rate by a quarter of a percentage point to a range of 5% to 5.25%, only a quarter of futures traders seem to believe the Fed’s next rate hike won’t be the last. While it is possible that the central bank will hold rates above 5% for the rest of the year rather than raising them, the underlying numbers do not back that assumption.

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