Odds of an interest-rate cut by September were on the rise Wednesday morning after the May CPI came in cooler than expected.
Traders now see a 68.8%% chance of at least a quarter-point cut through the Federal Reserve’s mid-September meeting, which is up from 61.7% on Thursday, according to the CME FedWatch Tool.
Odds of a rate cut through July rose to 16.5% from 14.4%. Odds of a cut at next week’s meeting were back on the board—albeit up to 0.1% from zero.