Money markets us rates futures weaker after fed officials remarks

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NEW YORK Nov 18 U.S. interest rates futures were steady to lower on Wednesday as remarks from several top Federal Reserve officials reinforced the notion the central bank would raise interest rates at its policy meeting in December. Rates futures implied traders see a 72 percent chance of a rate lift-off in December, compared with 64 percent on Tuesday, according to CME Group's FedWatch program."I am now reasonably satisfied the situation has settled down... So I am comfortable with moving off zero soon, conditioned on no marked deterioration in economic conditions," Atlanta Federal Reserve President Dennis Lockhart told a conference of bankers, traders and regulators at an event in New York.

The pace of rate hikes will likely be "relatively gradual or shallow," Lockhart said.

Rates futures suggested traders expect a 60 percent likelihood the Fed would increase rates again at its June 2016 meeting, compared with 54 percent on Tuesday.

Cleveland Fed chief Loretta Mester said the U.S. economy could handle a modest rate hike, while New York Fed President William Dudley said he doesn't expect "huge surprise" or a big market reaction when the Fed begins raising rates. Mester and Dudley were speaking at the same event as Lockhart.