Traders firm up bets on Fed rate hike in May

(Reuters) – Traders of futures tied to the Federal Reserve’s policy rate on Friday firmed up bets the U.S. central bank will raise its benchmark rate a final time in May after the government reported core inflation rose 4.6% in March from a year earlier.

U.S. short-term interest rate futures were down slightly after the report, reflecting about a 90% chance of a quarter-of-a-percentage-point rate hike in May. The current target range is 4.75%-5.00%.

(Reporting by Ann Saphir)