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Traders keep bets on Fed rate hike by October

By Reuters Reuters
A futures-options trader works on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City, U.S. June 8, 2026. REUTERS/Brendan McDermid
A futures-options trader works on the floor at the New York Stock Exchange's NYSE American (AMEX) in New York City, U.S. June 8, 2026. REUTERS/Brendan McDermid Brendan McDermid Reuters

Traders of short-term U.S. interest rates edged away from bets that the Federal Reserve rate will deliver a rate hike as soon as September, but continued to show strong conviction of a rate hike by October, after a government report showed consumer inflation rose 4.2% last month as economists had expected.

Pricing now reflects about a 45% chance of a September rate hike, versus just under 50% before the report. Traders see about a 60% chance of a hike by the October meeting.

(Reporting by Ann Saphir)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published June 10, 2026 at 5:53 AM.

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