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Traders see Fed starting to raising rates in September

The United States Federal Reserve Board building is shown behind security barriers in Washington October 28, 2014. REUTERS/Gary Cameron

(Reuters) - U.S. short-term interest-rate futures contracts rose Friday after a government report showed U.S. employers added more jobs than expected last month, but wage growth lagged.

The contracts now show that traders see a 55 percent chance that the first Fed rate hike will come in September 2015, based on CME FedWatch, which tracks rate hike expectations using its Fed funds futures contracts.

Before the report, traders saw a 59 percent chance of a September 2015 rate hike.

The Fed has kept short-term rates near zero since December 2008.


(Reporting by Ann Saphir; Editing by Chizu Nomiyama)