Market says it's a 'one and done' for the Fed until late 2016

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.