Traders see Fed on path for possible December rate hike

NEW YORK (Reuters) - U.S. short-term interest rates futures were little changed at lower levels on Wednesday following the release of the Federal Reserve's minutes from its Sept. 20-21 policy meeting, which supported the view of a possible rate increase in December.

Several members of the Federal Open Market Committee, the Fed's policy-setting group, thought a rate hike would be warranted "relatively soon" if the U.S. economy strengthens further, the minutes showed.

Three Fed policymakers dissented in favor an immediate rate hike at last month's meeting.

"We remain where we were: a market still betting Chair (Janet) Yellen wants a hike in December," Quincy Krosby, market strategist at Prudential Financial, wrote in a note regarding the minutes.

Federal funds futures implied traders saw about a 9 percent chance the U.S. central bank would raise rates at its policy meeting next month and a roughly 70 percent chance of a rate hike at its December meeting, according to CME Group's FedWatch program.

(Reporting by Richard Leong; Editing by Lisa Shumaker and Paul Simao)

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