CME Fedwatch Tool has rate hike odds for every FOMC meeting through the February 23, 2023 meeting.
The above chart reflects CME data as of December 21 , 2021.
Rate Hike Details
Over-Under Line
I added the last two columns to the CME data.
The over-under line for hikes is slightly more than three as betters see things. A sum of percentages shows a 53.7% chance of more than three hikes.
Moreover, there is a non-miniscule 17.2% chance of 5 hikes and a 24% chance of 5 or more if you think the betting line is correct.
I don’t, and if you don’t either, sophisticated investors might consider Eurodollar calls or futures (an interest rate bet not a currency bet).
Note: I did not price options, I am just speaking my mind. I have not traded eurodollar futures or options for a long time.
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