Fed seen delivering 25 bps cut next month after inflation data

(Reuters) – Traders on Thursday added to bets the Federal Reserve will deliver a 25 basis point interest-rate cut in November after a government report showed inflation last month was a bit firmer than expected.

The report showed the consumer price index rose 2.4% in September from a year earlier, more than the 2.3% economists had expected but down from the prior month reading of 2.5%.

After the report, traders moved to exit bets that the Fed could pause at next month’s meeting, and now see quarter-point rate cuts at each of the next several meetings.