Market now sees Fed rate hike as more likely than cut this year

Wall Street traders are now betting on the possibility of a Federal Reserve interest rate hike this year following hawkish signals from Fed officials, The Wall Street Journal reported. While the probability remains low, CME interest rate futures data shows traders are pricing in an 11% chance of a rate hike this year. This is up from 5% earlier in the day and 0% on April 29. In contrast, the probability of a rate cut is holding at around 2%.