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(Reuters) – Despite a stronger-than-expected reading for third-quarter U.S. economic growth, traders on Thursday added to bets the Federal Reserve will keep policy on hold through this year and will begin interest rate cuts in mid-2024.
Futures that settle to the Fed’s policy rate in December showed traders now see about a 25% chance the Fed will raise its benchmark short-term interest rate by a quarter of a percent at its last meeting of the year, to a range of 5.5%-5.75%.
Before the report, the contracts had priced in about a 30% chance of that.
(Reporting by Ann Saphir; Editing by Andrew Cawthorne)
