off-the-wire

Traders keep bets on June for first Fed rate cut after inflation data

Kitco Media
By Reuters
Published:
Updated:
Reuters
Traders keep bets on June for first Fed rate cut after inflation data teaser image

March 12 (Reuters) - Federal Reserve policymakers are still seen starting interest-rate cuts in June, even as a government report showed consumer prices rose last month more than expected, based on prices of futures contracts that settle to the U.S. central bank's policy rate.

And though the 3.2% rise in the February consumer price index versus a year earlier was a slight acceleration from the 3.1% increase in January, traders actually added to bets that the policy rate will end the year a full percentage point lower than its current 5.25%-5.5% range.

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Reporting by Ann Saphir; Editing by Alex Richardson

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