Fed interest rate decision looms: Market prices in 94% chance of rate hike

The Federal Reserve is set to announce its latest interest rate decision, with the market pricing in a 94% probability of a 25-basis-point hike, pushing the federal funds rate toward the 3.75%–4.00% range. Investors are focused on the FOMC dot plot, which provides insights into future rate paths, and the subsequent press conference by Kevin Warsh. Recent market performance shows the S&P 500 and Nasdaq trading sideways, while the energy sector remains a rare gainer amid interest rate uncertainty.