May 1, 2019 / 6:19 PM / 2 months ago

Traders boost bets on Fed rate cut later this year

May 1 (Reuters) - Traders of U.S. short-term interest rate futures added to bets that the Federal Reserve will cut rates before the end of the year after the U.S. central bank wrapped up a two-day meeting with no change to rates and tied its patient stance on monetary policy to “muted” inflation pressures.

Contracts tied to the Fed’s policy rate rose in price, which moves in the opposite direction to expectations about interest rates. Traders are now banking on a Fed rate cut by as early as the Fed’s October meeting. (Reporting by Ann Saphir Editing by James Dalgleish)

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