May 14 Reuters Traders on Tuesday pared bets the Federal Reserve will deliver a first interestrate cut in September after a government report showed wholesale prices rose more than expected in April.

The 0.5 increase in last month39;s producer price index from a month earlier provided little comfort that progress on inflation had resumed after disappointingly strong first quarter inflation data.

After Tuesday39;s PPI report traders saw about a 60 chance of a rate cut in September, compared with a 64 chance seen before the report.

Reporting by Ann Saphir; Editing by Kirsten Donovan

Source Reuters