off-the-wire

Traders less sure on Fed rate hike as inflation cools

Kitco Media
By Reuters
Published:
Updated:
Reuters

April 12 (Reuters) - Traders of futures tied to the Federal Reserve's policy rate on Friday were less sure the U.S. central bank will raise its benchmark rate any further after the government reported March consumer prices rose less than expected.

U.S. short-term interest rate futures rose after the report, and now reflect about a 60% chance of a quarter-of-a-percentage-point rate hike in May, versus about a 73% chance seen before the data. The current target range is 4.75%-5.00%.

Reporting by Ann Saphir; editing by Jason Neely
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