Markets are increasingly pricing in the possibility that the Federal Reserve’s September rate hike was only the start of a broader tightening cycle, with futures now implying a meaningful chance of consecutive increases before year end.

Markets See Room For Two More Hikes

Markets increasingly imply that the Fed could raise rates at both remaining scheduled meetings of 2026, on October 28 and December 9. This scenario is not yet the base case, but futures currently assign it roughly a four‑in‑ten probability, according to the CME FedWatch Tool. Markets also see a small chance of rate increases continuing into January, though current forecasts make that unlikely.

This shift follows a September hike, the first under new Fed Chair Kevin........

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