Everyone knows the Fed is virtually a lock to approve a quarter-point rate hike this week. Some traders, though, think the central bank could get even more aggressive.
The fed funds futures market, where traders make their bets about the direction of interest rates, is indicating a 92 percent chance that the policymaking Federal Open Market Committee will move its target rate range to 2 percent to 2.25 percent, or 25 basis points from the current level.
In recent days the market also has been entertaining the possibility of a more aggressive move — a 50 basis point hike, for which there is now an 8 percent chance. A week ago, such a move had only a 2 percent likelihood, and a month ago traders gave no chance to a half-percentage point move.