Feb 24 (Reuters) - Traders of futures tied to the Federal Reserve's policy rate added to bets on Friday that the U.S. central bank will raise interest rates at least three more times, after inflation was reported to have accelerated in January.
Implied yields on Fed funds futures contracts rose after the Commerce Departmentreportedthe personal consumption expenditures price index, the metric by which the Fed measures its 2% inflation target, rose 5.4% in January from a year earlier, with underlying "core" inflation rising a faster than expected 4.7%.
The Fed's current target range for its policy rate is 4.5%-4.75%, and the futures contracts pricing points to firming expectations for that rate to rise to a 5.25%-5.5% range by June.
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