off-the-wire

Fed funds futures contracts price in further quarter-point hikes

Kitco Media
By Reuters
Published:
Updated:
Reuters

Feb 22 (Reuters) - Traders of futures tied to the Federal Reserve's policy rate on Wednesday largely stuck to the view the central bank will keep raising rates a quarter of a point at its next three meetings.

The U.S. central bank released minutes of its most recent meeting, Jan. 31 - Feb. 1, showing most policymakers agreed more rate hikes will be needed.

After the release the contracts continued to price in a top Fed policy rate in the 5.25%-5.5% range by June, similar to pricing before the release.

The current target range is 4.5%-4.75%.

Reporting by Ann Saphir Editing by Kirsten Donovan and Chris Reese
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