Interest rate futures have begun pricing in a higher probability of Federal Reserve rate cuts in June, following softer-than-expected inflation data from January.
Market pricing shifted slightly after the latest Consumer Price Index report, with interest rate futures now suggesting approximately 61 basis points of easing could occur by mid-year, up from 58 basis points the day before. The CPI rose 0.2% in January, below the 0.3% increase economists had anticipated and December's 0.3% monthly gain. This cooler-than-forecast inflation reading has reinforced expectations that the Fed may begin l