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)