Traders add to bets the Fed will keep cutting rates next year

(Reuters) – Traders of interest-rate futures that settle to the Federal Reserve’s policy rate added to bets the central bank rate will cut borrowing costs next week and follow up next year with further reductions, after economic data showed weekly claims for unemployment insurance unexpectedly rose.  

Traders now see the probability of a rate cut next week at about 97%, up from about 94% before the report, and are pricing in another three quarter-point rate cuts in 2025.