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Market expectations for at least four Federal Reserve rate increases this year dipped to less than one-in-five on the heels of the central bank’s policy statement on Wednesday.

Federal funds futures pinned the probability of four or more increases at 18.9 per cent at mid-day on Wednesday, down from 24.5 per cent on Tuesday, according to Bloomberg data.

The fall came after the central bank increased interest rates, and affirmed its expectations that it will raise rates two more times this year.

Odds of a June rate rise have also retreated to 47 per cent, down from around 60 per cent yesterday.

Copyright The Financial Times Limited 2018. All rights reserved.

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