Short term interest rate futures in the United States show that the probability of the Federal Reserve raising interest rates in July has risen to 45%
Short term interest rate futures in the United States show that the probability of the Federal Reserve raising interest rates in July has increased to 45%, up from 35% earlier on Monday. AI interpretation: Market expectations for further tightening policies by the Federal Reserve have significantly increased, reflecting that inflationary pressures remain severe. The pricing changes in the interest rate futures market directly push up the risk premium of monetary policy tightening. This trend clearly points to the Federal Reserve's determination to maintain a high interest rate environment, aimed at curbing price increases by suppressing demand. Investors are reassessing their asset allocation to cope with longer periods of high interest rate shocks.