(Reuters) - U.S. short-term interest rate futures on Friday pared earlier losses after a government report showed U.S. employers slowed hiring in August, leaving intact bets that the Federal Reserve will follow July's interest-rate reduction with two more rate cuts this year.
Traders are pricing in a quarter-point decrease in the Fed's policy rate target, to a range of 1.75% to 2%, at the Fed's Sept. 17-18 meeting, with a second policy easing expected by year's end, based on futures contracts traded at CME Group (NASDAQ:CME).