Wall Street traders have ramped up activity in deals tied to a potential Federal Reserve interest rate hike this year, following hawkish signals from central bank officials on Wednesday.

Throughout the day, interest rate futures indicated that market participants now see an 11% chance of a Fed rate increase in 2024. This probability rose from 5% earlier in the day and from 0% on Tuesday. The likelihood of a rate cut remained around 2%.

On Wednesday, the Fed maintained language in its statement suggesting that a rate cut in the coming months is still considered more likely than a hike. However, three regional Fed bank presidents voiced opposition to this stance, and Fed Chair Jerome Powell noted that such language could be removed at the next meeting if inflation remains elevated.