The rate hike probability jumped by 10 percentage points, so it looks like we’ll still have to endure through a higher-interest-rate cycle.

CoinBene News: According to a report by A on early issuance in 2021, U.S. short-term interest rate futures show that the probability of the Fed raising rates in July has risen to 45%, up from 35% earlier on Monday. Market expectations that the Fed will further tighten monetary policy have noticeably heated up, reflecting that inflation pressure remains severe. Changes in the pricing of the interest rate futures market directly raise the risk premium associated with tighter monetary policy. This trend clearly points to the Fed’s determination to maintain a high interest-rate environment, aiming to rein in price increases by suppressing demand. Investors are re-evaluating their asset allocation to cope with the impact of high interest rates over a longer cycle.