Fed fund futures moves higher after Powell stresses patience

LONDON (Reuters) - Futures contracts tied to the U.S. Federal Reserve's policy rate rose on Friday after Federal Reserve Chair Jerome Powell signalled the U.S. central bank will remain patient as it tries to nurse the economy back to full employment.

Fed fund futures contracts maturing in September 2022 rose to three-week highs while contracts maturing in December 2022 edged higher, indicating traders were reducing the expectations about likely policy tightening from the U.S. central bank.

In prepared remarks for a speech to the Jackson Hole economic conference, Powell said the U.S. economy continued to make progress towards the central bank's benchmarks for reducing its pandemic-era emergency programmes.

(Reporting by Saikat Chatterjee; Editing by Marc Jones)

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