off-the-wire

Fed seen likely on policy hold until Sept, but traders add to bets on July cut

Kitco Media
By Reuters
Published:
Updated:
Reuters
Fed seen likely on policy hold until Sept, but traders add to bets on July cut teaser image

Feb 13 (Reuters) - Traders on Thursday placed rising but still shy of even odds the Federal Reserve will cut its policy rate in July instead of waiting until September, after data showed wholesale prices rose faster than projected in January and jobless claims declined.

Before the reports traders of futures contracts that settle to the federal funds rate priced close to a 60% chance that the Fed would still be on hold in July at the current policy rate range of 4.25%-4.5%; after the data that chance fell to about 52%.

Reporting by Ann Saphir

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