March 7 (Reuters) - Traders of futures tied to the Federal Reserve's policy rate are now pricing a half-point interest-rate hike when the Fed meets in two weeks, after Fed Chair Jerome Powell said continued strong inflation data could require tougher measures.
Implied yields on fed funds futures contracts fell, pointing to a better-than-even probability seen that the central bank will lift its benchmark target range for its policy rate to 5%-5.25% from its current 4.5%-4.75%, up from about a 30% chance seen before the speech. The futures contracts pricing points to firming expectations for that rate to rise to a 5.25%-5.5% range by June.
Reporting by Ann Saphir Editing by Kirsten Donovan and Raissa Kasolowsky
