What do the latest Fed pricing in swap markets indicate?

Contracts made in swap markets on the dates corresponding to the next Fed meeting indicate that the markets are pricing in a 50 or 75 basis point increase. Transactions made in swap markets indicate that the Fed will make a 50 or 75 basis point increase decision at its September meeting. Swap contracts made for the September meeting date were realized as 2.958 percent, 62.8 basis points above the current Fed rate of 2.33 percent. This figure indicates that the markets are pricing in an increase of at least 50 basis points or more. Investors have increased their expectations that the Fed will raise interest rates at its next meeting after some Fed officials announced that they are focusing strictly on combating inflation despite the increasing risks to growth on the horizon. The next FOMC meeting where the Fed will make an interest rate decision will be held on September 21.