Traders boost bets on June Fed rate cut

Jan 28 (Reuters) - Traders on Wednesday boosted bets the Federal Reserve will cut short-term borrowing costs in June - but not before then - after the U.S. central bank left the policy rate in its current 3.50%-3.75% range, pausing a string of rate cuts last year aimed at heading off weakness in the labor market.

After the decision, interest-rate futures contracts were pricing in a 28% chance of a rate cut by April -- slightly less than before and the last meeting of Jerome Powell's term as Fed chair -- but a 64% chance of one by June, slightly more than previously, with a second rate cut seen likely before the year is out.