Fed Rate Hike Odds Hit 68.8% Before U.S. May CPI Release Tonight

According to CME FedWatch data, on June 10, the probability of a Federal Reserve rate hike by year-end stands at 68.8% before tonight's U.S. May CPI release. Of this, a 25 basis point cumulative hike has a 43.1% probability, 50 basis points 21.2%, 75 basis points 4.2%, and 100 basis points 0.3%. The U.S. Bureau of Labor Statistics will release May CPI data at 20:30 UTC tonight, with markets expecting a 0.5% month-over-month increase and 4.2% year-over-year growth—marking the first time since May 2023 that CPI could breach 4%. Core CPI is projected to rise 0.3% monthly and 2.9% annually.
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