off-the-wire

Traders keep bets on Fed rate cut in June after inflation data

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

Feb 28 (Reuters) - Traders of futures contracts that settle to the Federal Reserve's policy rate maintained bets on Friday that the U.S. central bank will restart cuts to short-term borrowing rates in June after data showed inflation rose in line with expectations in January.

They still see a second cut as likelier than not in September.

The 12-month change in the personal consumption expenditures price index, which the Fed targets at 2%, ticked down to 2.5% last month from 2.6% in December, and the core PCE measure fell to 2.6% from 2.8%, the Commerce Department's Bureau of Economic Analysis showed.

Reporting by Ann Saphir; Editing by Jan Harvey

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