As the policy debate heats up at the Fed, investors are getting more acclimated to the idea that a rate hike is coming soon.
The central bank passed on raising its interest rate target at the March meeting, and in doing so indicated that earlier indications of four hikes this year were too aggressive. That forecast came from the December meeting, during which the Fed hiked its rate a quarter point, the first increase in more than nine years.
However, the March decision didn't seem to sit well with some members of the Federal Open Market Committee, the bank's monetary policymaking arm, even though only Kansas City Fed President Esther George dissented. In recent days, at least four member have made statements indicating they're tired of waiting and believe the Fed should get back on the path to normalization.
Futures markets have been reacting to the hawkish chatter.
The market now assigns a 54 percent chance to a July hike, a 7 percentage point increase from Tuesday and 21 percentage points higher than a month ago, according to the CME's FedWatch tracker.