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Wall Street Bets $2.1 Trillion On A December Rate Hike

Wall Street

Investors have never been this sure the Fed is set to hike rates, and Donald Trump’s election has only made that hike more likely.

Wall Street bets on rising short-term interest rates reached the highest levels ever last week, climbing to $2.1 trillion and breaking the record set in 2014, the Wall Street Journal reports. Investors believe Trump’s presidency will spur higher growth and higher inflation, pushing the Fed to increase rates in an attempt to keep things under control.

Janet Yellen told lawmakers last week the Fed is likely to move “relatively soon,” warning that holding off on a rate hike could force the Fed to raise rates faster than they would like to keep the economy from overheating. [WSJ]