The reacceleration “should help temper concerns about the durability of the expansion and quiet chatter that the Federal Reserve needs to cut interest rates in July,” wrote Oxford Economics’ Ryan Sweet.
Traders of futures contracts tied to the Fed policy rate continue to price in quarter-point interest-rate cuts in each of September, November and December, as they also pared bets on a possible bigger rate cut to start the series.
Before the data traders had seen about a 21% chance the Fed would have cut rates by more than 25 basis points by its September meeting; that’s now down to about 15%.
Source: Economy - investing.com
