Fed funds futures traders see 94% likelihood of 75 basis point Fed hike in June, CME data shows

Traders of fed funds futures foresee a 94% chance that the Federal Reserve will deliver a 75 basis point rate hike in June, up from 70% on Thursday and 28% a week ago, according to the CME FedWatch Tool. That would be the first Fed hike of that size since November 1994. In total, traders are also factoring in a 90% chance or higher of two half-point hikes, one in May and the other in July, that would take the fed funds rate target to 2% to 2.25% over the next three months. On Thursday, Fed Chairman Jerome Powell confirmed that a half-point hike is in play for May and said that "it is appropriate in my view to be moving a little more quickly."

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.