Traders Anticipate Less Than 50 Percent Chance of U.S. Rate Hike by Year-End, According to Reuters

U.S. Interest Rates Futures Show Decline Amid Economic Concerns

NEW YORK (Reuters) – On Friday, U.S. interest rate futures experienced a decline, with traders assigning less than a 50 percent likelihood that the Federal Reserve will raise interest rates by the end of the year. This hesitation arises from worries surrounding the global economy and the potential for stimulus measures from central banks in other countries.

The federal funds contract for December delivery fell by half a basis point to 99.520, suggesting that traders estimate a 48 percent chance of a rate hike during the Fed’s last meeting of 2016. This is an increase from 47 percent on Thursday and 43 percent a week prior, as per data from CME Group’s FedWatch tool.