Traders keep bets after data that Fed is done raising rates

Traders on Friday kept bets that the Federal Reserve will not increase short-term borrowing costs beyond the current range of 5.25%-5.50%, after U.S. government data showed underlying inflation in August continued to ease.

Futures contracts that settle to the Fed’s policy rate were pricing only about a one-in-three chance of an interest-rate hike by year’s end, about the same probability as seen before the inflation figures were published.

Futures contracts suggest Fed rate cuts beginning next June.
Source: Reuters (Reporting by Ann Saphir; editing by Christina Fincher)