Forget September, or even December. Bond traders are betting the Federal Reserve won’t be able to pull off another interest-rate increase until September next year.
Earlier this week, the bond market was signaling an almost 50 percent chance that the Fed would raise rates by year-end. That optimism for the world’s biggest economy crumbled Friday, when the first reading of second-quarter economic growth showed a 1.2 percent annual pace of expansion, less than half the median forecast in a Bloomberg survey.
