Markets raise chances for a Fed rate hike following hot inflation report

• Traders moved further away Tuesday from expecting any Federal Reserve interest rate cuts and in fact began anticipating a higher probability that the next move would be a hike.
• Market pricing around noon Tuesday implied about a 37% probability of a rate increase before the end of the year.

Traders moved further away Tuesday from expecting any Federal Reserve interest rate cuts and in fact began anticipating a higher probability that the next move would be a hike.

Source: https://www.cnbc.com/2026/05/12/markets-raise-chances-for-a-fed-rate-hike-following-hot-inflation-report.html