Fed Swaps Trim Odds of a March Rate Cut to About One in Three
- Traders price in less monetary easing for all of 2024
- Strong labor-market gauge lifts short-term Treasury yields
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Bond traders reduced bets on Federal Reserve interest-rate cuts in 2024, with the odds of a move in March falling to about one-in-three, after a report on US job openings highlighted strength in the labor market.
Traders also marked down the odds of a Fed rate cut in May and priced in less monetary easing over the course of the year. Confidence in rate cuts reached the lowest point since the last policy meeting in mid-December. The Fed’s rate-setting committee concludes a two-day meeting on Wednesday at which no change is expected, however its statement and subsequent comments by Chair Jerome Powell may affect the outlook for interest rates.