Traders of rate futures pare Fed rate cut bets after economic data

Aug 14 (Reuters) - Traders erased what had been small but rising bets on a jumbo-sized half-point interest rate cut next month by the Federal Reserve after economic data Thursday showed a stronger-than-expected increase in wholesale prices last month and a drop in new jobless claims last week.

Traders continue to expect the U.S. central bank will move ahead with a quarter-point cut next month, followed by another in October.