Probability of 4 Fed rate hikes this year has increased to 25 percent - FedWatch

  • Rising inflation boosts odds of faster Fed tightening. 

Fed funds futures put the probability of Fed raising rates four times this year at 25 percent vs. 17 percent seen before the US CPI release, according to FedWatch. 

Also,  investors have priced-in an 83 percent chance the Fed would raise interest rate by a quarter point to 1.50-1.75 percent at its March 20-21 policy meeting.A Reuters report quotes JP Morgan as saying that, "the scorching core CPI has raised the likelihood that Fed policymakers might revise their rate hike guidance at their March meeting to four rate hikes for 2018 from three."

Still, the US dollar has taken a beating across the board. As of writing, the dollar index, which tracks the value of the greenback against majors, is trading 0.77 percent lower at 88.90 levels. 



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.