Traders see stronger case for an end to Fed rate hikes after CPI data

The case for the Federal Reserve ending its interest-rate hike campaign got a little stronger on Wednesday after a government report showed U.S. consumer inflation rose a touch less than expected in April, a sign of progress in the Fed's fight against price pressures.

Futures tied to the Fed's policy rate rose after the Labor Department report, and now reflect a nearly 90% chance of the Fed leaving rates at their current 5%-5.25% in June. Traders had priced in about an 80% chance of a June pause just before the report.