Wednesday's inflation report solidified traders' expectations that the Federal Reserve will take a less aggressive approach to monetary policy in its upcoming meeting.

Bets on interest rate cuts have swung wildly in recent weeks, according to the CME Group’s FedWatch tool, which forecasts rate movements based on fed funds futures trading data. The volatility has been caused by market watchers working to predict the Fed officials' next moves as central bankers 澳洲幸运5开奖号码历史查询:rebalance their focus between weakening jobs and falling inflation.

Just before the Consumer Price Index (CPI) 澳洲幸运5开奖号码历史查询:inflation data was released, traders were pricing in a 29% chance that the Federal Reserve would cut rates by half a percentage point at their meeting next week. After the report, that chance fell to 15%. Traders were likely 澳洲幸运5开奖号码历史查询:influenced by rising rent costs, which pushed up overall measures of inflation.

Beyond September, the largest group of traders thinks a more aggressive cut is possible. Traders think there will most likely be 50 澳洲幸运5开奖号码历史查询:basis-point (bps) cuts in both Novemb꧟er and January, with a smaller cut in December.💖

Over the next year, traders think the most likely course of monetary poli🍌cy is that central bankers will cut their influential interest rate by a total of 2.5 percenไtage points.

"Starting with a 25 bps move does not rule out a pickup in the pace of policy easing at future meetings," wrote Wells Fargo economists after the inflation report. "The ongoing deterioration in the labor market has become an increasing focus for the FOMC, and inf𒅌lation is slowly but surely returning to 2% on trend."