Traders of futures contracts tied to the Federal Reserve’s policy rate boosted bets on Friday that the U.S. central bank is not yet done on raising interest rates, after a government report showed inflation last month rose faster than expected.
Implied yields on the contracts rose after the Commerce Department report, reflecting about a 60% chance that the Fed will increase its target range for the benchmark rate, currently at 5%-5.25%, by a quarter of a percentage point at its June meeting.
Futures contracts earlier in the day were pricing in about a 60% chance the Fed would skip a June rate hike.
(Reporting by Ann Saphir; editing by Jason Neely)
