Traders boost bets Fed to wait until June to start rate cuts

April 4 (Reuters) - Traders added to bets the Federal Reserve will wait until June to commence interest-rate cuts, as Fed Chair Jerome Powell said it's becoming clear that U.S. President Donald Trump's bigger-than-expected tariffs are likely to trigger both higher inflation and slower growth.

Trading in short-term interest-rate futures contracts put about a 45% chance that May will mark the start of reductions to the Fed policy rate, now in the 4.25%-4.50% range, down from a better-than-even chance seen earlier on Friday. Traders are now pricing short-term borrowing costs at 3.29% by year end.