Traders Pull Back on Rate-Cut Bets as They Seek Clarity From Fed
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Traders are ratcheting back wagers on US interest-rate cuts as they seek clarity from the Federal Reserve amid a thicket of economic and political crosscurrents.
Just one week ago, US short-term futures markets reflected expectations for almost three-quarters of a point of rate cuts in 2025, including a reduction as soon as June. Now, in the hours leading up to the Fed’s policy decision and press conference on Wednesday, they are barely pricing in two reductions — and not until the second half of the year.