March 21, 2018 / 6:58 PM / a year ago

Traders boost bets on more Federal Reserve interest rate rises

(Reuters) - Traders of U.S. short-term interest-rate futures on Wednesday added to bets the Federal Reserve will raise rates at a slightly faster pace over the next two years after Fed policymakers ended a two-meeting with a rate hike and upgraded economic forecasts.

Prices of futures tied to the U.S. central bank’s main policy rate fell after the forecasts showed Fed policymakers now expect three rate hikes next year, up from two.

The drop in price reflected trader expectations for that slightly faster rate-hike path, based on a Reuters analysis of fed funds futures contracts traded at CME Group Inc.

Reporting by Ann Saphir in San Francisco

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