Odds of an interest-rate cut through July perked up after the April CPI came in cooler than expected.
Traders see a 42.6% chance of at least one quarter-point cut through July, which was up from 38.6% prior to the report, according to the CME FedWatch Tool. Odds of a cut through September were up slightly at 80.7% from 79.5% prior to the report.
Through the end of the year, odds of at least a half-point in cuts were at 80.5%, while traders see a 12.4% chance of a full percentage point in rate cuts.