Markets’ hopes for Fed interest rate cuts are rapidly fading away
As both energy prices and inflation fears pop, expectations for Federal Reserve interest rate cuts are sliding. Traders in recent days have abandoned hopes of an early summer easing from the central bank, a change in thinking that coincided with the U.S.-Israel attacks on Iran and a burst in oil prices to around $100 a barrel. Prior to the conflict, the market anticipation had been for a quarter percentage point rate reduction in June, likely another one in September, and on outside chance of even three depending on how the economics played out, according to the CME Group's FedWatch calculations. Much [...]