Fed will probably increase rates again

Short-term interest-rate futures contracts traded at the Chicago Board of Trade show strong expectations that the Federal Reserve will follow up February's rate hike with quarter-point increases at its next two meetings, on March 22 and May 3. Fed funds contracts are fully priced for a quarter-point hike in March and despite the Fed's repeat projection for "measured" increases, the March contract reflects a 68 percent chance for a more-aggressive half-point hike that month. The odds that the Fed's target stands at 3% on May 3, up from its current 2.5%, are priced by the market at 97 percent. The futures market is less certain the Fed will raise its target to 3.25% on June 30, putting just better than 50-50 odds on that outcome.

Source: MarketWatch