Rate Hike Odds: A Market Misfire or a Warning Sign? The bond market's increasing bets on a Federal Reserve rate hike have left economists and Fed members perplexed.
While futures markets place roughly 50% odds on a December rate increase, many experts believe the market is overreacting to recent inflationary pressures.
One reason for this skepticism is that contracts showing high probabilities of a rate hike tend to be those with low trading volumes.