Traders Bet It Will Take Longer for Fed to Start Cutting Rates

From finance.yahoo.com

Traders are betting on a slower pace of interest-rate cuts from the Federal Reserve this year, with economic resilience forcing policymakers to remain on hold for longer before easing more sharply in 2026. Just a day ahead of the US central bank’s latest policy decision, money markets are pricing three quarter-point reductions this year, one less than at the start of April. About a half point of additional cuts are expected next year, the most priced in for 2026 at any point in the current easing cycle. Traders will be scrutinizing comments by Fed Chair Jerome Powell on Wednesday — when the central bank is ... (full story)