Fed funds futures traders see slightly greater chances of no further Fed rate hikes in 2023, after U.S. data

Fed funds futures traders continued to boost their expectations for no further rate hikes by the Federal Reserve this year, after Wednesday’s data on private-sector payrolls and revised second-quarter GDP. The chance of no action by the Fed in September was seen at 90.5%, up from 86% a day ago, according to the CME Fed Watch Tool. Traders see a 57% and 55.5% likelihood of no action respectively in November or December, which would leave the fed funds rate at between 5.25%-5.5%.