Investors Now See 1-in-4 Chance the Fed Raises Interest Rates in July

Traders now see a 25% chance the Federal Reserve raises interest rates on July 29 — a reversal from earlier expectations of rate cuts. The reason: Middle East tensions have pushed oil to $87.10, up 19% in a month, and government bond yields to 4.63%, raising fears of higher prices and slowing growth at the same time.