July 30 U.S. short-term interest-rate futures contracts barely budged Wednesday after the Federal Reserve wrapped up a two-day meeting with a nod to firmer inflation, as traders kept bets the Fed will raise rates in mid-2015.
The contracts show markets are assigning a roughly 61 percent chance of a first Fed rate hike in June 2015, based on CME FedWatch, which tracks rate-hike expectations using its fed funds futures contracts.
Before the report traders saw a 60 percent chance of a June 2015 rate hike. Traders saw about a 44 percent chance of a hike at the April 2015 meeting both before and after the report
The Fed has targeted short-term benchmark interest rates of between zero and 0.25 percent since December 2008 and has said it would keep them there for a "considerable time" after it ends its bond-buying program. It is on track to wind down its bond-buying program in October. (Reporting by Ann Saphir; Editing by James Dalgleish)