Odds of Fed rate hike by Jan. 2027 top 50% on Kalshi

The odds of a U.S. Federal Reserve rate hike by January 2027 have surpassed 50% in the interest rate futures market, according to data from Kalshi, Walter Bloomberg reported via X. He explained that the outlook for a rate hike, which was previously near zero, has expanded rapidly and is beginning to reflect the possibility of a resumption of monetary tightening within 2026. The market is currently pricing in an approximately 34% chance of an additional rate hike before 2027.