(Reuters) – Inflation is slowing fast enough to allow the Federal Reserve to stop tightening U.S. monetary policy after what is still widely expected to be an interest-rate hike at its meeting in two weeks time, traders bet on Wednesday.
Implied yields on futures tied to the U.S. central bank’s policy rate fell after a government report showed consumer prices last month rose 3.0% from a year earlier, after climbing 4.0% in May.
Underlying inflation, whose persistence has been particularly worrying to Fed policymakers, eased more than expected to 4.8%.
The contract pricing still shows traders overwhelmingly expect the policy rate to rise a quarter point, to a 5.25%-5.5% range, at the Fed’s July 25-26 meeting, but now see about a 25% chance of another rate hike before year’s end, down from about 35% before the report.
Discover behavioral finance strategies and pro tips to smarter investing. Elevate your financial decision-making today.
Explore the world of stock market anomalies and unlock their potential to boost your investment…
Discover expert tips on asset allocation strategies to maximize returns & minimize risks. Learn the…
Kaiser Permanente and labor unions reached a tentative agreement to resolve a contentious contract dispute…
Oct. 12, 2023 11:34 am ETAirlines have suspended flights into Israel en masse, leaving people…
Listen to article(2 minutes)In early 2019, an analyst asked Disney Chief Executive Bob Iger if…