June 14 (Reuters) - U.S. short-term interest rate futures pared earlier gains on Wednesday after the Federal Reserve delivered a widely expected policy rate hike and provided details on its plan to trim its massive balance sheet.
Chicago Mercantile Exchange Fed funds futures traders had earlier stepped up bets against a third 2017 rate hike after a report showed weaker than expected inflation last month.
Just after the Fed’s rate-hike decision at 2 p.m, (1800 GMT), they trimmed those bets slightly, but not enough to suggest they have shifted their view that a third rate hike this year is unlikely.
Traders now see June next year as the earliest meeting at which the U.S. central bank will next lift its target for overnight borrowing costs, based on fed funds futures traded at CME Group as analyzed by Reuters. (Reporting by Ann Saphir)