Fed seen delivering half-point rate hike in Sept as inflation eases

Traders now expect increases in the Fed's policy interest rate to top out in December at 3.25%-3.5%

Slowing U.S. inflation may allow Federal Reserve policymakers to downshift their most aggressive round of monetary policy tightening in decades when they meet next month, though data on tap in coming weeks could still change the picture.
 

After a U.S. Labor Department report Wednesday showed consumer prices didn't rise at all in July compared with June, traders of futures tied to the Fed's benchmark interest rate on Wednesday slashed bets the central bank would enact a third straight 75-basis-point hike at its Sept. 20-21 policy meeting, and instead would opt for a half-point increase.
 

One Fed policymaker, while not immediately