March 15 (Reuters) - Traders of futures tied to the
Federal Reserve's policy rate have dialed back their bets the
U.S. central bank will raise its benchmark rate a quarter of a
percentage point next week to about even odds, after a
government report showed U.S. retail prices fell in February and
turbulence at Credit Suisse renewed fears of a banking crisis.
Prices of Fed funds futures reflected about a 50% chance of
a quarter-percentage point rate hike this month with roughly a
50% chance seen of no change. The current target range is
4.5%-4.75%.
One day ago, futures were pricing in an almost 70%
probability of a quarter-percentage point rate at the Fed's
policy meeting next week, according to the CME FedWatch Tool.
(Reporting by Lindsay Dunsmuir; Editing by)
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