Traders see fading chance of July Fed rate cut

June 24 (Reuters) - Traders of short-term interest-rate futures on Tuesday priced in a smaller chance of a July Federal Reserve interest-rate cut after Fed Chair Jerome Powell used his prepared remarks to Congress to repeat that the central bank is well-positioned to wait for more clarity before adjusting short-term borrowing costs.

Futures contract prices now reflect only about a 16% chance of a July Fed rate cut, down from about 23% earlier. Traders continue to expect a Fed rate cut in September, with a second rate cut expected in October or, more likely, in December.