(Reuters) – Traders of futures contracts that settle to the Federal Reserve’s policy rate maintained bets on Friday that the U.S. central bank will restart cuts to short-term borrowing rates in June after data showed inflation rose in line with expectations in January.
They still see a second cut as likelier than not in September.
The 12-month change in the personal consumption expenditures price index, which the Fed targets at 2%, ticked down to 2.5% last month from 2.6% in December, and the core PCE measure fell to 2.6% from 2.8%, the Commerce Department’s Bureau of Economic Analysis showed.
(Reporting by Ann Saphir; Editing by Jan Harvey)
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