Traders stick to view that Fed holds next week, cuts in September

(Reuters) – Futures contracts tied to the Federal Reserve’s policy rate on Friday edged up only slightly after data showed underlying inflation last month was a bit stronger than expected, reflecting continued confidence in the prospect of a series of interest rate cuts starting in September.    Traders remain convinced the Fed will keep rates steady at its meeting next week, and continue to bet the Fed will deliver an initial rate cut the following meeting and two more rate cuts by year end.

(Reporting by Ann Saphir)