Traders bet Fed rate hikes are over, cuts to start in 2024

Based on Thursday’s U.S. government report revealing moderate growth in consumer prices last month, traders are speculating that Federal Reserve policymakers are unlikely to implement further interest rate hikes in 2023 and are more inclined to initiate rate cuts in the early months of the following year.

Those engaged in futures tied to the Fed’s policy rate are now assigning a probability of less than 10% for the U.S. central bank to raise its current benchmark overnight interest rate, which ranges from 5.25% to 5.50%, during the policy meeting scheduled for September 19-20.

This outlook has shifted from around a 14% likelihood of a rate increase next month prior to the Labor Department’s report, Reuters reported.

READ MORE: https://finance.yahoo.com/news/traders-bet-fed-rate-hikes-135908371.html

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