Traders Adjust Bets on Fed Rate Cuts in September and December Following Economic Data

Traders have adjusted their bets on Federal Reserve interest-rate cuts following the release of economic data. After wholesale prices rose more than expected in April, traders reduced their expectations for a rate cut in September. However, following the CPI data, traders have increased their bets on rate cuts in 2024, with some seeing 73 basis points of cuts compared to 71 basis points before the data. Short-term interest-rate futures have also seen an increase as traders add to their bets on rate cuts in response to the CPI report. Overall, traders now anticipate rate cuts in September and December.