Traders of futures tied to the Fed’s policy rate now see about a 95% chance the U.S. central bank will decide to forgo an 11th straight interest-rate hike and keep the benchmark rate at 5.00% to 5.25% on Wednesday. Before the report, traders saw about a one-in-four chance of a June rate hike.
Traders also trimmed bets on a Fed rate hike in July, overwhelmingly expected in markets before the report, which showed consumer prices rose 4% in May from a year earlier. That was the smallest annual gain in more than two years.
“The data ever so slightly tilts things towards this not just being a skip, but a full-blown hold,” said Brian Jacobsen, chief economist at Annex Wealth Management.
Source: Economy - investing.com
