Economics
Traders Seen Sticking to Fed Rate-Cut Bets as Tariffs Remain
- Trump-Xi ceasefire hasn’t removed trade, economy uncertainties
- Prospect of more upsets in negotiations could limit repricing
This article is for subscribers only.
It might take more than a few friendly words between U.S. President Donald Trump and Chinese leader Xi Jinping to substantially reduce bond traders’ bets on Federal Reserve interest-rate cuts.
The U.S. and China declared a truce in their trade war on Saturday that was heavy on hoopla but light on details. While the positive noises out of the Group-of-20 summit in Osaka underpinned risk appetite, at least initially, uncertainties over still unresolved trade disputes and the economic outlook could return to cloud investor sentiment.