CME Group FedWatch Tool's December rate hike odds increase to 66.4% post-FOMC

After the Federal Reserve announced that it kept the target interest rate unchanged at 1.75%-2% range on Wednesday, the CME Group FedWatch Tool's odds for a 25 bps rate hike in September ticked down to 90% from 91% seen on July 31. However, the probability of a second rate hike in December rose to 66.4% from 64.7%.

In its monetary policy statement, the FOMC said that the longer-term inflation expectations were little changed and reiterated that further gradual increases in the fed funds rate would be consistent with the sustained economic expansion, strong labor market, and the inflation objective.