Fed rate hike priced in, outlook uncertain

The Fed is widely expected to raise rates by 25 basis points at the conclusion of a two-day meeting on Wednesday. While the hike appears to be largely priced in by markets, traders remained uncertain over what the Fed may signal.

U.S. inflation still remains well above the central bank’s target range, which could see the Fed stick to its plan for at least one more hike this year after Wednesday’s move.

But Fed Fund futures prices show that markets are pricing in the chance that the bank will keep rates steady for the remainder of the year.