NEW YORK, March 17 (Reuters) - The eurodollar and Fed funds markets, which track short-term interest rate expectations, on Wednesday reduced bets on the time frame of a potential tightening by the U.S. Federal Reserve after it dampened expectations of an early move. In the more liquid eurodollar futures market, traders have priced in a 90% chance of a Fed hike by March 2023 after the Fed statement, pushing back from December 2022. Traders also factored in an additional rate increase in 2023, down from three hikes seen for the year. The fed funds market, which has thinner volume, showed a roughly 80% chance of a rate hike by February 2023, compared with expectations for tightening by December 2022 before the Fed statement. In a statement after the Fed held interest rates steady, the U.S. central bank said it expects a rapid jump in U.S. economic growth and inflation this year as the COVID-19 crisis winds down, and vowed to keep its target interest rate near zero for years to come. (Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis)
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