It will be on hold until September and will rise bet on previous interest rate cuts

With Spair

(Reuters) – The Federal Reserve is likely to wait until September before cutting policy rates, with traders betting on Thursday.

Still, certain factors that rose 0.4% on the producer price index last month, gave economists’ expectations for 0.3% profit – reason to expect improvements in the scale the Fed uses to track inflation .

Several analysts calculating data along with Wednesday’s report on January’s consumer prices surges revealed that inflation in January’s consumer spending prices was 2.6% or 2.7% in January from 2.8% in January. He said he estimates it has risen.

“The Fed can therefore declare that progress is still being made in bringing inflation back to its 2% target,” writes Pantheon economist Samuel Tomes.

Financial markets also reflect that view, with market-based odds rising until the likelihood of rate reductions in July rose slightly from just before 40%. Interest rate cuts in September are still considered likely.

Last month, Fed policymakers kept their policy rates in the 4.25%-4.50% range. Fed Chairman Jerome Powell said this week he feels that policy needs to be restricted until there is better progress by defeating inflation.

Central bankers are also turning to signs of weakness in the labour market that could cause interest rate cuts.

On Thursday, another government report showed a decline in the number of Americans filing new unemployment benefits applications last week, suggesting that the labor market remains stable early in February. It suggests.

(Reported by Ann Saphir, edited by Lucia Mutikani, Howard Schneider, Dan Burns, and Chizu Nomiyama)