(Reuters) - The Federal Reserve is likely to wait until October 2015 before raising interest rates from their near-zero level, traders bet on Wednesday, after the U.S. central bank said it would be “patient” before embarking on its first round of rate hikes in a decade.
Short-term U.S. interest-rate futures contracts show traders see a 65 percent chance of a first Fed rate hike coming in October 2015, based on CME FedWatch, which tracks rate hike expectations using its Fed funds futures contracts.
Before the Fed’s decision, traders has expected the first rate hike to come in September.
The Fed has kept short-term rates near zero for six years.
Reporting by Ann Saphir; Editing by Chris Reese