Futures that settle to the Fed's policy rate show traders now expect a quarter-percentage-point reduction by September, with another such move likely in October. Before Thursday's data, traders had expected the Fed to wait until December to deliver a second rate cut. The U.S. central bank cut rates three times in 2024.

Fed seen on track to start cutting rates by September. June 11 (Reuters) - Cooler-than-expected U.S. inflation last month deepened conviction in financial markets on Wednesday that the Federal Reserve will start cutting interest rates by September and deliver a second reduction by the end of this year.