Traders weigh chance of Fed cutting US rates after Brexit

By: | Published: June 24, 2016 11:10 AM

US short-term interest rates futures rose to contract highs in early US trading on Fridayafter Britons voted to leave the European Union...

Federal Reserve may cut interest rates to help shield the economy from any global fallout.(Reuters)Federal Reserve may cut interest rates to help shield the economy from any global fallout. (Reuters)

US short-term interest rates futures rose to contract highs in early US trading on Friday after Britons voted to leave the European Union, spurring traders to expect the Federal Reserve may cut interest rates to help shield the economy from any global fallout.

Federal funds futures implied traders priced in a 10 percent chance the US central bank may reduce key US rates at itsJuly 25-26 policy meeting. That later slipped to 4 percent , according to Reuters data.

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