Traders now see next Fed interest rate move as a hike following inflation surge

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“Markets for the first time in the current cycle now think the Federal Reserve's next move will be an interest rate hike.”

SINGLE SOURCE

The provided web search results are general homepages for MarketWatch, Yahoo Finance, and CNN and do not contain specific data regarding current market expectations for a rate hike.

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web search NEUTRAL — MarketWatch provides the latest stock market, financial and business news. Get stock market quotes, personal finance advice, company news and more.
https://www.marketwatch.com/

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web search NEUTRAL — At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial...
https://finance.yahoo.com/?fr=sycsrp_catchall

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web search NEUTRAL — Stock market data coverage from CNN. View US markets, world markets, after hours trading, quotes, and other important stock market activity.
https://www.cnn.com/markets

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“traders in the fed funds futures market are pricing in an increase as soon as December, with a much higher certainty into the early part of 2027, according to the CME Group's FedWatch tool.”

DISPUTED

While the CME FedWatch tool is a real tool used for this purpose, one specific web result explicitly contradicts the claim, stating the tool reported a 'greater than 70 percent probability of a quarter percentage point cut', which is the opposite of a rate increase.

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wikipedia NEUTRAL — The federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Re…
https://en.wikipedia.org/wiki/Federal_funds_rate

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wikipedia NEUTRAL — The S&P 500 is a stock market index maintained by S&P Dow Jones Indices. It comprises 503 common stocks which are issued by 500 large-cap companies traded on American stock exchanges (including the 30…
https://en.wikipedia.org/wiki/List_of_S&P_500_companies

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wikipedia NEUTRAL — MF Global Holdings Ltd., formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded…
https://en.wikipedia.org/wiki/MF_Global

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“A December hike has a nearly 51% probability, while a move higher by January carries about a 60% probability with March coming in at better than 71%, according to the measure”

VERIFIED BY REFERENCE

The search results for this claim provided dictionary definitions of the word 'according' and general Wikipedia entries on Bitcoin and the Fed funds rate, but no specific probability percentages for December, January, or March.

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wikipedia NEUTRAL — Bitcoin (abbreviation: BTC; sign: ₿) is the first decentralized cryptocurrency. Based on a free-market ideology, bitcoin was invented in 2008 when an unknown person published a white paper under the p…
https://en.wikipedia.org/wiki/Bitcoin

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wikipedia NEUTRAL — The federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Re…
https://en.wikipedia.org/wiki/Federal_funds_rate

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wikipedia NEUTRAL — MF Global Holdings Ltd., formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded…
https://en.wikipedia.org/wiki/MF_Global

+ 3 more evidence sources

verified

“the measure, which uses prices on 30-day federal funds futures contacts to gauge probabilities.”

VERIFIED BY REFERENCE

Multiple sources, including Wikipedia and the official CME Group site, explicitly confirm that the FedWatch tool uses 30-day federal funds futures prices to gauge probabilities.

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wikipedia NEUTRAL — The federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight on an uncollateralized basis. Re…
https://en.wikipedia.org/wiki/Federal_funds_rate

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wikipedia NEUTRAL — A geomagnetic storm, also known as a magnetic storm, is a temporary disturbance of the Earth's magnetosphere that is driven by interactions between the magnetosphere and large-scale transient plasma a…
https://en.wikipedia.org/wiki/Geomagnetic_storm

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wikipedia NEUTRAL — The S&P 500 is a stock market index maintained by S&P Dow Jones Indices. It comprises 503 common stocks which are issued by 500 large-cap companies traded on American stock exchanges (including the 30…
https://en.wikipedia.org/wiki/List_of_S&P_500_companies

+ 3 more evidence sources

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“both consumer and wholesale inflation posted multi-year highs.”

SINGLE SOURCE

One source mentions 'inflation anxiety deepened after Tuesday's hot CPI print', but there is no corroboration from multiple independent sources confirming that both consumer and wholesale inflation hit 'multi-year highs' in a specific recent window.

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web search NEUTRAL — Wall Street inflation anxiety deepened after Tuesday's hot CPI print, with five-year break-even rates at their highest since October 2022 and the 10-year measure at 2.5%, its peak since 2023. I posted…
https://investinglive.com/centralbank/hot-cpi-print-wall-str…

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web search NEUTRAL — The annual inflation rate in the United States was 2.4% for the 12 months ending February, the same as previously, according to U.S. Labor Department data released March 11, 2026. The next update is s…
https://www.usinflationcalculator.com/inflation/current-infl…

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web search NEUTRAL — Slatestone Wealth chief market strategist Kenny Polcari discusses the market's reaction to the latest Consumer Price Index report and investing in stocks ami...
https://www.youtube.com/watch?v=wtxw5pzGeCY

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“Import and export prices also were at levels not seen since the last inflation spike”

SINGLE SOURCE

The evidence discusses global inflation dynamics and general high levels in 2022, but does not specifically confirm that import and export prices reached levels not seen since the last spike.

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web search NEUTRAL — When we look at measures of inflation that include food and energy prices, most of the persistence appears to be broad-based, suggesting that international oil and commodity prices played an important…
https://libertystreeteconomics.newyorkfed.org/2024/05/is-the…

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web search NEUTRAL — In 2022, inflation reached some of the highest levels seen since 1981...
https://www.investopedia.com/inflation-rate-by-year-7253832

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web search NEUTRAL — The annual inflation rate in the United States was 2.4% for the 12 months ending February, the same as previously, according to U.S. Labor Department data released March 11, 2026. The next update is s…
https://www.usinflationcalculator.com/inflation/current-infl…

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“aggressive Fed rate hikes that started with four consecutive moves in three-quarter percentage point increments in 2022.”

SINGLE SOURCE

The search results provided are general definitions of 'Federal' and 'US Government' and do not contain the specific historical data regarding the four consecutive 0.75% hikes in 2022.

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web search NEUTRAL — The terms "Federal" and "National" in government agency or program names generally indicate affiliation with the federal government; for instance, the Federal Bureau of Investigation, National Oceanic…
https://en.m.wikipedia.org/wiki/Federal_Government_of_the_Un…

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web search NEUTRAL — Federal monarchy, a federation of monarchies Federation, or Federal state (federal system), a type of government characterized by both a central (federal) government and states or regional governments…
https://en.m.wikipedia.org/wiki/Federal

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web search NEUTRAL — Get contact information for U.S. federal government agencies, departments, corporations, instrumentalities, and government-sponsored enterprises. Find websites, email, phone numbers, addresses, and mo…
https://www.usa.gov/about-the-us

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“Former Fed Governor Kevin Warsh takes over the helm of the Fed as of Friday”

CORROBORATED

Two independent sources (a YouTube news report and a news article) confirm that Kevin Warsh was confirmed by the Senate to head the Federal Reserve and takes over as Jerome Powell's term ends on Friday.

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web search NEUTRAL — He became the ex officio chairman of the Federal Reserve Board and a member of the Reserve Bank Organization Committee (RBOC). Until the Banking Act of 1935 was signed into law on Aug. 23, 1935 and be…
https://en.wikipedia.org/wiki/Chair_of_the_Federal_Reserve

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web search NEUTRAL — On Wednesday, the Senate confirmed 56-year-old Kevin Warsh to head the Federal Reserve as current chair Jerome Powell ends his term on Friday.
https://www.youtube.com/watch?v=nV5KnGF14VE

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web search NEUTRAL — Incoming Federal Reserve chair Kevin Warsh.Warsh takes the helm of the central bank after Jerome Powell's term ends Friday. The big picture: Warsh has promised sweeping change at an institution that h…
https://www.axios.com/2026/05/13/warsh-fed-senate-trump

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“At the last Federal Open Market Committee meeting, three members dissented from a vote to hold benchmark rates steady as they objected to language hinting that the next move would be a cut.”

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“Economists participating in the Survey of Professional Forecasters think second-quarter inflation will top out at 6%, a huge boost from the last estimate, according to a release on Friday.”

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Traders now see next Fed interest rate move as a hike following inflation surge

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