US rate futures raise odds of rate-cut pause in January meeting

NEW YORK, Dec 10 (Reuters) - Futures on the federal funds rate, which measure the cost of unsecured overnight loans between banks, raised the odds on Wednesday that the Federal Reserve will pause its easing cycle at the next policy meeting in January.

Futures priced in a 78% chance the Fed will hold interest rates steady, compared with a 70% probability just before the rate cut announcement.

New projections issued after the U.S. central bank's 25 basis-point rate reduction, showed the median policymaker sees just one quarter-percentage-point cut in 2026, the same outlook as in September.