off-the-wire

Traders keep bets on September Fed rate cut as US inflation cools

Kitco Media
By Reuters
Published:
Updated:
Reuters
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May 30 (Reuters) - Traders of futures that settle to the Federal Reserve's policy rate continued to bet on Friday that the U.S. central bank will cut its target for short-term borrowing costs in September, after inflation by the Fed's targeted measure cooled to 2.1% in April.

The Personal Consumption Expenditure price index rose 2.3% in March, and the Fed targets 2% inflation. Traders also kept bets on a second Fed rate cut in December.

Reporting by Ann Saphir; Editing by Sharon Singleton

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