Traders bet on second straight 50 bps Fed rate cut in November
Sept 27 (Reuters) -Traders added slightly to bets the Federal Reserve will deliver a second 50-basis-point interest rate cut in November after a government report Friday showed inflation rose modestly in August, clearing the way for the central bank to focus on shoring up the labor market.
Interest rate futures contracts reflected about a 54% chance of a half-point cut in November, versus a still-hefty 46% chance of a quarter-point cut, and either way traders are betting the policy rate - now in the 4.75%-5.00% range - will be 75 bps lower by year end.
Reporting by Ann Saphir
Editing by Christina Fincher
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