Jan 13 (Reuters) – Traders on Tuesday boosted bets the Federal Reserve may not wait until Fed Chair Jerome Powell’s term ends in May before cutting interest rates again, after the Bureau of Labor Statistics reported underlying consumer prices rose a bit less than expected last month. Traders still think a June cut, after Powell […]
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Traders edge up bets on earlier Fed rate cut after inflation data
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Jan 13 (Reuters) – Traders on Tuesday boosted bets the Federal Reserve may not wait until Fed Chair Jerome Powell’s term ends in May before cutting interest rates again, after the Bureau of Labor Statistics reported underlying consumer prices rose a bit less than expected last month.
Traders still think a June cut, after Powell is no longer chair, is the most likely outcome, but following the data priced in about a 42% chance of an April cut, up from 38% before the data.
(Reporting by Ann Saphir; Editing by Andrew Heavens)