Traders now see next Fed interest rate move as a hike following inflation surge

Construction on the Marriner S. Eccles Federal Reserve building in Washington, DC, US, on Monday, Dec. 15, 2025. Al Drago | Bloomberg | Getty Images Markets for the first time in the current cycle now think the Federal Reserve 's next move will be an interest rate hike. Following a week of surprisingly high inflation readings, traders in the fed funds futures market are pricing in an increase as soon as December, with a much higher certainty into the early part of 2027, according to the CME …