Traders See a July Fed Cut as Certain Even With More Upbeat Data

Traders remain locked into the notion of an interest-rate cut from the Federal Reserve this month even after a suite of better-than-expected economic data Tuesday.

Fed funds futures for August indicate that the central bank’s benchmark will be around 2.085% after the July 31 policy decision. That’s more than a quarter-point below the current fed funds rate of 2.40% and just one basis point above the implied yield on the contract Monday.