Traders keep bets on no Fed rate hikes in 2019

FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC
FILE PHOTO: A cyclist passes the Federal Reserve building in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo

January 4, 2019

(Reuters) – U.S. short-term interest-rate futures fell on Friday as a government report showed job creation surged in December, but the move was not big enough to reflect a change to the expectation that the Federal Reserve will not deliver a single rate hike this year.

Traders of contracts tied to the Fed’s policy rate continued to price in no chance of a 2019 Fed rate hike, and a rate cut by early next year. Fed officials themselves have signaled they expect two rate hikes this year.

(Reporting by Ann Saphir, Editing by Franklin Paul)

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