Futures imply more aggressive action by Fed on rates

NEW YORK, Sept 21 (Reuters) - Traders priced in more aggressive action by the U.S. Federal Reserve on raising rates, penciling in rates rising to over 4.5% mid-next year, slightly higher than prior to the meeting.

The Fed on Wednesday raised its target interest rate by three-quarters of a percentage point to a range of 3.00%-3.25% and signaled more large increases to come in new projections showing its policy rate rising to 4.40% by the end of this year before topping out at 4.60% in 2023 to battle continued strong inflation.

Fed futures indicated rates would rise to 4.54% in March 2023, versus 4.50% this morning. The futures prices indicate the probability of another 75 basis point hike in November at 72.1%.

Reporting by Alden Bentley, writing by Megan Davies, editing by Chris Reese