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Traders See Fed Cutting Rates Just Twice in 2025 on Cooling Trade War
Traders lowered their bets on the Federal Reserve’s interest-rate cuts this year, pricing in just two reductions for 2025 after the US and China agreed to cut tariffs and moderate their trade war. Swaps that track upcoming central bank meetings showed just 55 basis points of easing by December, down from near 75 basis points last week. Traders still see the first quarter-point cut in September. The policy-sensitive two-year yield rose as much as 12 basis points Monday to back above 4%, as traders pulled back their estimates of rate cuts for 2025. The rise in yields combined with decreasing certainty over rate cuts ... (full story)
