Traders Eye Series of Fed Cuts With Bullish Bets at Risk
Traders work on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York.
Photographer: Michael Nagle/BloombergA key question for investors this week is whether Federal Reserve officials push back against market bets on a series of interest-rate cuts extending into next year.
A quarter-point reduction is seen as a sure thing when the Fed announces its policy decision Wednesday, with a small potential for a half-point move amid signs US job growth is slowing rapidly. Indeed, President Donald Trump told reporters Sunday that he expects a “big cut” this week. But markets have also priced in reductions continuing deep into 2026 to ward off a recession.