Fed funds futures traders were back to pricing in a more than 80% chance of a quarter-point rate increase next Wednesday by the U.S. central bank, after data that included declining weekly jobless claims and a rise in consumer spending in the first quarter. The likelihood of a May rate hike by the Federal Reserve was seen at 85.4%, up from 72% a day ago, which would lift the fed funds rate target to between 5% and 5.25%, according to the CME FedWatch Tool. Traders also factored in a decent 24% chance of another quarter-point hike in June, while pulling back on the extent of rate cuts they see through December. Thursday’s…
