Fed Reserve May Increase Key Rate By 50 Basis Points Next Week:BloombergBy Darrell Hassler June 22 (Bloomberg) -- Interest-rate futures are starting to suggest the Federal Reserve may increase its key interest rate by as much as 50 basis points when policy makers meet next week. The yield on the federal funds futures contract for July rose 1 basis point, or 0.01 percentage point, 5.28 percent at the Chicago Board of Trade, putting the odds at about 12 percent for an increase to 5.5 percent on the overnight rate for loans between banks on June 28 and 29. Expectations for Fed increase have climbed since Fed Chairman Ben S. Bernanke's June 5 comments that signs of inflation are ``unwelcome.'' The government said last week that consumer prices excluding food and energy rose more than forecast for a third consecutive month in May. ``A 50 basis point move would help cement Mr. Bernanke's anti-inflation credibility issues that are still perceived by man in the market as being a bit too soft,'' Man Financial inte (more...)