Treasuries Trim Gains With Fed, Traders Split on 2024 Rate Cuts
- Market still favors two quarter-point cuts as Fed projects one
- Powell says actual path for rates will depend on future data
This article is for subscribers only.
US Treasuries trimmed gains after the Federal Reserve reduced the number of projected interest-rate cuts this year to just one, leaving the central bank at odds with the market.
Fed officials left their main policy-rate steady at a two-decade-high of 5.25% to 5.5% on Wednesday and forecast only a single quarter-point cut by the end of the year. Swap contracts that predict decisions by the US central bank, by contrast, still factored in rate reductions in November and December — while odds of a September move faded slightly from earlier in the session.