Traders see Fed hiking interest rates in September

The price of futures contracts tied to the Fed's benchmark policy rate moves inversely to the rate that traders expect at any given point in time, and the drop suggests traders have added to bets the Fed will raise rates in September.

Traders see a better-than-even chance the Fed will wait until September to raise rates, and will not increase them a second time in 2016.

(Reporting by Ann Saphir; Editing by Meredith Mazzilli)