Rate-Cut Hopes Still Alive After Inflation Cools
Cooler-than-expected inflation data has made it a little more likely that the Federal Reserve will be able to cut interest rates sometime this year, according to a gauge measuring investors’ expectations.
Traders are now pricing in a 36% chance that the central bank slashes borrowing costs in July, according to the CME FedWatch tool, up from 33% a day ago.
The consumer price index climbed 2.3% year over year in April, according to data released by the Bureau of Labor Statistics on Tuesday. That’s the lowest reading since February 2021.