#Traders Abandon Rate Cut Bets#

Traders are no longer fully pricing in a rate cut by the Federal Reserve before July, a shift that signals a change in market expectations for the Fed's future monetary policy path. Previously, the market widely anticipated a rate cut by the Fed before July this year to address the risk of an economic slowdown. However, recent economic data releases have shown that the US economy remains resilient, and inflationary pressures have not eased significantly, leading traders to lower their expectations for a Fed rate cut. Additionally, recent speeches by Fed officials have hinted that they may not cut rates soon. Despite this, there remains a divergence in the market, with some traders still believing the Fed will cut rates later this year to avoid a recession. Going forward, the market will closely monitor the Fed's policy stance and changes in economic data to determine whether and when the Fed will cut rates.