Federal Reserve Interest Rate Futures

(Reuters) – Traders of interest-rate futures on Wednesday were pricing close to even odds that the Federal Reserve will cut interest rates twice by the end of this year, with the first reduction expected in June.

Government data revealed that consumer prices rose by 2.9% in the 12 months through December, aligning with economists’ expectations. Prior to this report, interest-rate futures were only pricing in a single quarter-point rate cut this year, set for June at the earliest.