Traders raise the chances of a Fed rate cut following inflation report


Shoppers during the grand opening of a Costco Wholesale store in Kyle, Texas, on Thursday, March 30, 2023.

Jordan Vonderhaar | Bloomberg | Getty Images

Even with inflation running well above the Federal Reserve’s goal, markets became more convinced Wednesday that the central bank will be cutting interest rates by as soon as September.

The annual inflation rate as measured by the consumer price index fell to 4.9% in April, its lowest level in two years but still more than double the Fed’s 2% target.

Still, it was enough for traders to raise the chances of a September rate cut to near 80%, according to the CME Group’s Fed Watch tracker of prices in the fed funds futures market. In fact, the…


0 0 votes
Article Rating

Disney (DIS) earnings report Q2 2023

Previous article

Unity (U) Q1 earnings report 2023

Next article

You may also like

Notify of
Inline Feedbacks
View all comments

More in Economy