Traders trim bets on Fed interest-rate hike this year

Traders trim bets on Fed interest-rate hike this year

Kevin Lamarque

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 rise suggests traders are no longer betting the Fed will raise interest rates even once by the end of the year.

Before the Fed ended its meeting, traders saw a 21 percent chance of a rate hike in July and a 35 percent chance of a rate hike in September, and a 51 percent chance of a hike in December.

(Reporting by Ann Saphir; Editing by Chizu Nomiyama)

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