Traders now believe there is over an 80% chance of a 25 basi...

Traders now believe there is over an 80% chance of a 25 basis point rate cut by the September Federal Reserve meeting.

The "New Fed Communication Network" noted that after the April report, two more CPI reports would be needed to boost the Fed's confidence. The Fed is unlikely to cut rates before September. The significance of the April CPI data lies in its preservation of the possibility of rate cuts later this year and its alleviation of concerns that the Fed might need to further open the door to rate hikes.

Wall Street analysts suggest that while April's inflation data may not prompt the Fed to cut rates in July, it might suffice for a rate cut starting in September. However, some analysts remain cautious.