Fed funds futures signal 2012 rate hikes ( FFG12 FFU12 ) (by Laura Mandaro)
SAN FRANCISCO (MarketWatch) -- Fed funds futures Wednesday signaled little change to some traders' expectations that the Federal Reserve could start hiking rates in the first quarter of next year. After the Federal Reserve released a policy statement saying it was keeping rates at 0% to 0.25%, fed funds for February (ffg12) priced in rates of 0.32% by that month, in line with Tuesday's expectations. Since the Fed typically moves rates in quarter-point increments, expectations for rates at 0.33% indicate some traders are expected a hike to 0.5%. By September 2012, rates should be around 0.86%, with forecasts also little changed from Tuesday.