June 14 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)