Fed rate-hike bets back on table after strong economic reports

Traders are pricing in higher chances that the Federal Reserve will raise interest rates some time this year after U.S. economic reports including retail sales and industrial production signaled improving growth. They saw 44% probability the Fed will raise rates by yearend as of Friday, up from 15% after the U.K.'s vote to leave the European Union. U.S. policy makers next meet on July 26 and 27. https://www.investmentnews.com/wp-content/uploads/assets/graphics src="/wp-content/uploads2016/07/CI106171718.PNG" Sales at U.S. retailers rose more than forecast last month in a broad advance that shows consumers delivered for the economy in the second quarter. The 0.6% increase in June retail receipts exceeded the highest estimate in a Bloomberg survey and followed a 0.2% gain the previous month that was smaller than previously estimated, Commerce Department figures showed Friday. So-called core sales, used to calculate gross domestic product, rose a larger-than-projected 0.5% for a second month.