Fed-funds futures traders cling to expectations of a 75 basis point rate hike in June

Fed-funds futures traders see an 83% likelihood that the Federal Reserve will raise its main policy rate target by 75 basis points in June, to between 1.5% and 1.75%, according to the CME FedWatch Tool. Though down from 94% a week ago, the expectations have remained relatively unshaken even after Fed Chairman Jerome Powell said on Wednesday that policy makers are not actively considering such a large move. The last time the Fed delivered a 75 basis point hike was in November 1994. As of Friday, the likelihood of a 50 basis point hike in June was seen as 17%. (Updates to correct the probability of a half-point rate hike in June.)