Traders bump up bets on Fed rate cuts to shore up labor market

Sept 11 (Reuters) - Concern about a softening job market will keep Federal Reserve policymakers on course to resume cutting interest rates next week, though a stronger-than-expected rise in consumer inflation in August looks likely to prevent them from delivering a super-sized rate cut to start.

That was the bet in short-term interest-rate futures markets Thursday after a government report showed jobless claims rose sharply last week. Rate futures pricing now reflects bets on three straight quarter-point Fed rate cuts, one at each meeting left this year, starting with the Fed's September 16-17 meeting.