New York

BOND guru Bill Gross says if the Federal Reserve raises interest rates in September, policy makers are increasingly likely to wait at least six months before a second hike. Market measures indicate the wait may be twice as long.

Money-market derivatives indicate the federal funds rate will average 0.60 per cent a year from now. The rate would have to exceed about 0.625 per cent to indicate two quarter-point increases, assuming the funds rate will trade close to the middle of the official band. The Fed has held its target for the rate in a zero-to 0.25 per cent range since December 2008.