Traders lean into bets the Fed will not cut rates until June

Jan 29 (Reuters) - Short-term interest-rate futures priced in a stronger chance that the Federal Reserve will not cut interest rates until June after the U.S. central bank left its policy rate unchanged and dropped from its post-meeting statement a longstanding reference to "progress" on inflation.

Traders after the statement were pricing in about a 40% chance of a rate cut before June, compared with nearly 50% seen earlier. Rate-futures contracts continue to point to June as the most likely resumption of rate cuts, with a second quarter-point interest-rate reduction likelier than not by the end of the year.