Investors Expect Another Fed Hike Before Year End

The Fed delivered a quarter-point increase in interest rates, but investors see more hikes ahead.

The federal-funds rate target is now at 3.75%-4% . Investors priced in a roughly 13% chance that rates end the year at these levels, the CME Fed Watch tool showed.

Traders are now betting the central bank will deliver additional rate increases before year end. Odds of one more 25-basis-point increase sat at nearly 52%, while the probability of 50-basis-point-increase was at over 35%.