Futures price toss up on likelihood of Fed rate hike next week

Traders of futures tied to the Federal Reserve’s policy rate have dialed back their bets the U.S. central bank will raise its benchmark rate a quarter of a percentage point next week to about even odds, after a government report showed U.S. retail prices fell in February and turbulence at Credit Suisse renewed fears of a banking crisis.

Prices of Fed funds futures reflected about a 50% chance of a quarter-percentage point rate hike this month with roughly a 50% chance seen of no change. The current target range is 4.5%-4.75%.

Credit Suisse sheds nearly 25%, key backer says no more money

One day ago, futures were pricing in an almost 70% probability of a quarter-percentage point rate at the Fed’s policy meeting next week, according to the CME FedWatch Tool.