Traders weigh chance of Fed cutting U.S. rates after Brexit

Traders gather for the opening of LinkedIn Corp. at the post where it is traded on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 13, 2016. REUTERS/Brendan McDermid

NEW YORK (Reuters) - U.S. short-term interest rates futures rose to contract highs in early U.S. trading on Friday after Britons voted to leave the European Union, spurring traders to expect the Federal Reserve may cut interest rates to help shield the economy from any global fallout.

Federal funds futures implied traders priced in a 10 percent chance the U.S. central bank may reduce key U.S. rates at its July 25-26 policy meeting. That later slipped to 4 percent FFN6, according to Reuters data.

Reporting by Richard Leong; Editing by Kim Coghill