Fed funds futures traders now see a 57.4% likelihood that the Federal Reserve will lift rates again in June after April’s personal consumption expenditures index showed inflation stuck in the 4% to 5% range. The likelihood of another quarter-of-a-percentage-point rate hike in June is up from 51.7% a day ago, and would take the Fed’s main benchmark rate target to between 5.25-5.5%, according to the CME FedWatch Tool. Meanwhile, the likelihood of a pause in July was seen at 50.9%, based on data before U.S. stock markets opened. The policy-sensitive 2-year Treasury yield jumped to around 4.59% after the report.

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