According to PolyBeats monitoring, on the prediction market Polymarket, 1 account has put in $13.4k on "Will the Fed raise rates in 2026?" with an average buy-in probability of 34.8%, and the current "Yes" probability is 34.5%.
The May 21 release of the Fed's H.15 rate data showed the 10-year Treasury yield had briefly hit 4.67% on May 19, and the 30-year hit 5.18%, then on May 20 they were still at 4.57% and 5.11% respectively. Reuters reported on May 21 that the rapid rise in Treasury yields this week was in part driven by investors pivoting from "rate cuts this year" to reconsidering the risk of "rate hikes this year" after higher-than-expected April inflation; the hedging selling by mortgage-backed securities investors has also amplified this round of Treasury selling.
The April 28-29 FOMC meeting minutes were released on May 20, stating that most participants believe if inflation continues to run above 2%, it may be appropriate to consider further policy tightening; the materials from the meeting also noted the Middle East tensions pushing up energy prices, inflation still above target, and economic activity continuing to expand at a solid pace. The minutes also indicated that the market's implied path still suggests rates would remain largely unchanged this year, with the New York Fed's survey's median path still pointing to two 25 basis point cuts in the next year, just pushed back in time.
Account:
0xa309f903dbbd559e87d8d368834b8e41355c4cf2.
