Traders tend to bet that the Federal Reserve will not cut interest rates until June
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2025-01-29 23:38:29
After the Federal Reserve left its policy rate unchanged and dropped long-mentioned claims of "progress" in inflation in its post-meeting statement, short-term interest rate futures pricing suggested a greater likelihood that the Fed would not cut rates before June. Following the statement, traders expected a roughly 40% chance of a rate cut before June, compared with a previous forecast of nearly 50%. Interest rate futures contracts continue to point to June as the most likely month to resume rate cuts, with a second 25 basis point cut before the end of the year more likely. (Jin Ten)