Traders on Wednesday raised the chances of a September interest rate cut to close to 80%.
That came even with inflation still running well above the Fed's 2% target and "sticky" prices stubbornly high.
Shoppers during the grand opening of a Costco Wholesale store in Kyle, Texas, on Thursday, March 30, 2023.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., its lowest level in two years but still more than double the Fed's 2% target.
However, the bar seems high for a rate cut, even if central bankers decide they can halt increases for now., an influential policymaker and voter on the rate-setting Federal Open Market Committee, said Tuesday he doesn't expect that policy will ease at all this year, though he left open the possibility beyond that.
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