Analysis: Traders bet that the Federal Reserve will continue to cut interest rates during an economic recession

Odaily Planet Daily News: The futures market is betting that the Federal Reserve will not cut interest rates at next week's policy meeting, but if concerns about a trade war triggering an economic recession come true, the Fed may launch a series of rapid rate cuts in June. After President Trump's speech on the "transition period" of the economy last weekend, traders bet that the Federal Reserve will quickly cut interest rates during an economic downturn. More and more people in the futures market expect consecutive interest rate cuts in June, July, and October, and Federal Reserve officials are facing a dilemma of rising inflation and economic weakness. The US stock market and US treasury bond bond yields also fell sharply on Monday, because people worried that Trump's remarks foreshadowed the coming economic recession. Federal Reserve Chairman Powell stated last Friday that the Fed is not in a hurry to cut interest rates because the labor market remains strong, inflation is on a bumpy path towards the 2% target, and there is significant uncertainty about the impact of Trump's trade, fiscal, immigration, and regulatory policies. Economists say that these policies may push up prices, at least in the short term, slowing down economic development. Goldman Sachs economists lowered their US economic growth forecast to 1.7% on Monday and raised their inflation expectations. (Golden Ten)