Futures market expecting rate hike on eve of July Federal Reserve meeting

The Federal Open Market Committee (FOMC) has convened its two-day July policy meeting.

Investors anticipate that the Federal Reserve will pull the trigger on a quarter-point rate hike tomorrow, according to the CME FedWatch Tool.

Here is what the futures market is betting:

What happens for the rest of the year remains to be seen.

The Summary of Economic Projections has signaled two more rate hikes this year, but investors are fighting the Fed and expecting a pause until early 2024 when officials will cut interest rates.

Grab the popcorn!