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Traders flip to betting on Fed hikes as inflation hits 6%

Why this story

Fed futures pricing December rate increases with 6% Q2 inflation projection signals potential second inflation wave with major economic implications.

BULL CASE

Markets correctly forced the Fed pivot — futures now price December hikes after forecasters called 6% Q2 inflation.

BEAR CASE

Fed is behind the curve — $691B Treasury selloff this week drove 10-year yields to 4.6% per Wolf Street.

GLOBAL MARKETS

Trump's failed China visit compounds inflation fears — stocks and bonds both sold off per MarketWatch reporting.

Hidden Truth
Hidden truth: Treasury dumped $691B bonds into falling market this week — creating the debt spiral traders are betting against.
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Will the Federal Reserve raise interest rates by December 2026?