US interest rate futures signal higher chance of June Fed cuts following soft inflation report

Lower than expected inflation data released today has boosted expectations for a Federal Reserve rate cut in June. The Consumer Price Index rose 0.2 percent.

Financial markets in the US USUS saw a notable shift in expectations today as new inflation data led to a recalibration of future monetary policy. U.S. interest rate futures priced in a higher probability of Federal Reserve rate cuts in June after the January Consumer Price Index (CPI) rose by 0.2%, a figure that was lower than the 0.3% forecast predicted in a Reuters poll.
An eagle sits atop the facade of the U.S. Federal Reserve building in Washington, D.C., on August 26, 2025, as President Donald Trump announced the firing of Governor Lisa Cook over alleged mortgage loan improprieties. REUTERS/Brian Snyder
An eagle sits atop the facade of the U.S. Federal Reserve building in Washington, D.C., on August 26, 2025, as President Donald Trump announced the firing of Governor Lisa Cook over alleged mortgage loan improprieties. REUTERS/Brian Snyder
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