Traders keep bets on September Fed rate cut as US inflation cools

Fri, May 30, 2025

Traders of futures that settle to the Federal Reserve's policy rate continued to bet on Friday that the U.S. central bank will cut its target for short-term borrowing costs in September, after inflation by the Fed's targeted measure cooled to 2.1% in April.

The Personal Consumption Expenditure price index rose 2.3% in March, and the Fed targets 2% inflation. Traders also kept bets on a second Fed rate cut in December.