February 14, 2018 / 1:53 PM / in 8 months

Traders add to bets on Fed rate hikes after inflation report

(Reuters) - U.S. short-term interest-rate futures fell on Wednesday after a government report showed consumer prices rose faster than expected in January.

FILE PHOTO: The Federal Reserve headquarters in Washington September 16 2015. REUTERS/Kevin Lamarque/File Photo

The move points to added conviction the Federal Reserve will raise rates twice this year as inflation firms, and an increasing chance of a third rate hike, based on a Reuters analysis of Fed funds futures contracts traded at CME Group Inc. Traders continued to expect the first hike of the year to come next month, giving it about a 88 percent chance.

Reporting by Ann Saphir in San FranciscoEditing by Chizu Nomiyama

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