Traders Keep Bets on Fed Rate Hike by October
By Reuters | 10 Jun, 2026

Traders of short-term US interest rates show strong conviction of a rate hike by October, after a government report showed consumer inflation rose at an annualized 4.2% in May.

Traders of short-term U.S. interest rates edged away from bets that the Federal Reserve rate will deliver a rate hike as soon as September, but continued to show strong conviction of a rate hike by October, after a government report showed consumer inflation rose 4.2% last month as economists had expected.

Pricing now reflects about a 45% chance of a September rate hike, versus just under 50% before the report. Traders see about a 60% chance of a hike by the October meeting.

(Reporting by Ann Saphir)