Dec 14 U.S. short-term interest rate futures
fell on Wednesday as traders priced in a faster pace of rate
hikes for 2017, after the Federal Reserve lifted its target rate
for the first and only time this year.
Traders are now pricing in at least two rate hikes next
year, with a good chance of third, based on the price of fed
funds futures contracts traded at CME Group Inc's Chicago Board
of Trade. Before the Fed decision at the conclusion of a two-day
policy meeting, traders were pricing in one to two rate hikes
The price of futures contracts tied to the Fed's benchmark
policy rate moves inversely to the rate that traders expect at
any given point in time.
(Reporting by Ann Saphir, editing by G Crosse)