CME FedWatch: Markets see an 86.7% probability of a 25-bp Fed hike on Wednesday

CME FedWatch implying an 86.7% probability of a 25 bps Fed hike reinforces expectations for tighter financial conditions. A higher policy-rate path typically supports the USD and pressures duration-sensitive risk assets via higher discount rates and tighter liquidity. Near-term markets may see renewed sensitivity in rates, FX, and equity-index positioning into the meeting as investors adjust hedges and risk exposure.