Traders See Just One 2025 Fed Rate Cut After Hot Inflation Data
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Bond traders pushed out bets for the next Federal Reserve interest-rate cut to December as US inflation exceeded expectations.
Swap contracts linked to future Fed decisions, which previously anticipated a rate cut by September, repriced after January consumer prices rose more than economists estimated. The new levels imply just one quarter-point cut this year. Treasury debt prices slumped, sending yields higher by at least eight basis points across maturities.