NEW YORK, June 18 Some U.S. short-term interest
rates futures slipped on Wednesday as the latest forecasts among
Federal Reserve policymakers strengthened the view the central
bank may increase rates in mid-2015.
Federal funds futures for June 2015 delivery briefly
fell to a 2-1/2 month low of 99.625 before rebounding to 99.665,
up 1 basis point from Tuesday's close.
The price move suggested traders had priced in a 61 percent
chance the central bank would raise short-term rates from its
zero to 0.25 percent target range at its policy meeting a year
from now, according to CME Group's FedWatch, which calculates
the traders' expectations on changes to Fed's policy rate.
The Fed released the median view of central bank officials
on the fed funds rate at the end of 2015 was 1.125 percent, up
from 1.000 percent based on their March forecasts.
Their median outlook for the fed funds rate at the end of
2016 was 2.50 percent, up from 2.25 percent in March.
However, their median longer-run view on the fed funds rate
was downgraded to 3.75 percent from 4.00 percent in March.
(Reporting by Richard Leong; Editing by Nick Zieminski)