Markets are now pricing in the likelihood of a 50 basis-point increase in September rather than 75 basis points, and less than 100 basis points of hikes over the next two meetings.
Economists are divided on whether slower US consumer-price growth for July means the Federal Reserve could ease its aggressive rate-hiking program, making 75 basis-point moves less definite.
The consumer price index increased 8.5% from a year earlier, cooling from the 9.1% June advance that was the largest in four decades, Labor Department data showed Wednesday. Prices were unchanged from the prior month.
