Markets Increase Bets on Three More Fed Hikes by End of 2027

Markets increased bets on three additional Federal Reserve rate hikes by the end of 2027 as U.S. short-term rate futures fell on Oct. 14. The dollar index (DXY) rose nearly 40 points and was at 102.52.

U.S. consumer prices rose 3.7% year over year in September, compared with a 3.6% forecast and 3.4% previously. Before the CPI release, markets put the probability of the Fed holding rates steady in October at 78.4%.