Fed-funds futures traders were shifting toward a greater likelihood of a 50-basis-point rate cut from the Federal Reserve by October, following Treasury Secretary Scott Bessent's calls for easing. The chance of such a reduction rose to 70.

Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

Key Takeaways Four Federal Reserve officials spoke publicly after this week's inflation report, and none called for the central bank to cut interest rates.Financial markets are nonetheless pricing in a 100% chance the Fed will cut rates at its next meeting in September.