The June contract suggests an effective Fed Funds rate of 1.08%, 75 basis points higher than where the effective interest rate is likely to be on Thursday, after taking into account the just-announced 25 basis point hike. The Fed tends to move in 25 basis point increments, meaning a 50 basis point move will be priced for May, the next meeting, or June, the next.

This post Fed price hikes signal bigger rate hike at one of next two meetings

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