Fed seen on course for June start to 2025 rate cuts after data

(Reuters) – The Federal Reserve is seen restarting interest-rate cuts in June, traders bet on Tuesday, as government data showed U.S. producer prices were unexpectedly flat last month and weekly jobless claims fell.

Short-term interest-rate futures after the data were pricing about a 75% chance of a quarter-point reduction to the Fed’s policy rate by June, little changed from what was seen prior to the data. They continue to price in a total of three rate cuts for the year.

(Reporting by Ann Saphir)