As Fed heads toward 75-basis pt rate hike, officials wary of bigger move

Interest-rate futures contracts currently imply a roughly one-in-six chance that the Fed will hike rates by a full point this month, with a 75 basis-point hike regarded as certain

Federal Reserve officials are on track to raise interest rates by 75 basis points for the second straight month when they meet later in July, after policy makers pushed back against a bigger move.
 

Investors reversed bets on a full percentage-point move after wary comments from officials including Atlanta Fed President Raphael Bostic and St. Louis’s James Bullard, plus a rare bit of good news on inflation.

Shortly after they both spoke Friday morning, data showed US consumers’ long-term inflation expectations declined in early July by more than forecast to 2.8%, versus 3.1% the month before.