Washington, DC, June 13 (BNA): Federal policymakers are likely to skip raising interest rates this week after government data on Tuesday showed that consumer price gains, while still very hot, slowed last month slightly more than expected. .
Futures traders pegged to the Fed’s policy rate now see about a 95% chance that the US central bank will decide to forgo its 11th consecutive rate hike and keep its benchmark interest rate at 5.00% to 5.25% on Wednesday. Ahead of the report, traders saw a one in four chance of a rate hike in June, Reuters reported.
Traders also cut bets on a Fed rate hike in July, which was widely expected in markets ahead of the report, which showed consumer prices rose 4% in May from a year earlier. This was the lowest annual gain in more than two years.
“Data as ever tilts things a little bit towards this is not just a skip, but a complete commentary,” said Brian Jacobsen, chief economist at Annex Wealth Management.
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