Markets are becoming more convinced that the Federal Reserve is about to get more aggressive on interest rates.
The probability that the central bank will raise its benchmark rate a fourth time this year went above 50 percent for the first time, according to the CME's FedWatch tracking tool for the fed funds futures market.
Futures contracts are currently implying a funds rate of 2.21 percent from the current range of 1.5 percent to 1.75 percent. According to the CME, that translates into a 51 percent chance of a December rate hike, which would be the fourth of the year.
The Fed already approved one quarter-point hike, in March. Futures trading indicates a 95 percent chance of a June increase — the probability had been 100 percent as recently as last week — and an 81.4 percent likelihood of another move in September.