Traders add to bets on September start to Fed rate cuts

(Reuters) – Traders added to bets that the U.S. Federal Reserve will deliver its first interest rate cut this year in September, after a government report on Friday showed U.S. inflation rose last month in line with expectations.

Interest-rate futures prices pointed to about a 65% chance of a rate cut at the U.S. central bank’s mid-September meeting, up from less than 60% before the report that showed the personal consumption expenditures (PCE) price index increased 0.3% last month from February.

(Reporting by Ann Saphir; editing by Christina Fincher)