Traders boost bets on Fed rate cuts this year, starting in September

Traders on Wednesday boosted bets that the Federal Reserve will cut interest rates by September after a U.S. government report showed consumer inflation cooled more than expected last month.

After the consumer price index was reported not to have risen at all in May from a month earlier, short-term interest-rate futures implied about a 70% chance of a rate cut by September, compared with about a 54% chance seen before the report.

Traders also added to bets on a second Fed rate cut by December.
Source: Reuters (Reporting by Ann Saphir; Editing by Andrew Heavens)