Traders pricing in only one Fed rate hike in 2016

What's next for the Fed? Five truths for 2016

The rapid tumble in the stock market has brought with it a correspondingly quick slide in interest rate expectations for 2016.

Traders now believe the Fed is likely to hike rates just once this year, with that move likely being postponed at least until September, according to the CME FedWatch tracking tool. That contrasts with earlier expectations that the Fed could move two or three times.

In December, the Federal Open Market Committee hiked the funds level it uses to target broader interest rates by a quarter point. At the time, FOMC officials, through the so-called dot plot of future expectations, indicated the Fed would move four times this year, presumably once a quarter at the meetings where Chair Janet Yellen holds a news conference afterwards.

However, market turmoil has ensued since the rate hike, which was the first in more than nine years. The has tumbled about 11.5 percent during the period.