The Fed Fund futures market is currently pricing in a 90.8 percent chance of a 75--100 bps March hike and a 9.2 percent chance of a 50-75 percent rate hike. In other words, futures traders see a combined 100 percent chance of at least a 0.5 percent interest rate hike this month.

The current market expectations represent a major shift from just a week ago. At the beginning of March, financial markets were pricing on only about a 30 percent chance of a March hike. However, public comments by Fed Chair Janet Yellen and other policymakers in the past week strongly suggest the Fed plans to take an aggressive approach to interest rates.

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