the chances of the federal reserve delivering five 25basispoint rate hikes by yearend have risen to nearly 33 on thursday from 22 tuesday according to the cme fedwatch tool the odds which are derived from fed funds futures imply that the central banks main policy rate target will reach 125 to 15 by december versus the current level between zero and 025 the shift comes after fed chairman jerome powell said on wednesday that 2022 is the year that policy makers will move steadily away from an easy policy stance investors are adjusting to the likelihood of a series of rate increases this year by sending the 1and 2year treasury yields higher by 15 and 10 basis points to almost 074 and 117 respectively while the us dollar index dxy is trading around its highest level since 2020