#Traders Abandon Rate Cut Bets#

Traders have recently shifted their bets on a Fed rate cut before July, no longer fully pricing in this expectation. This shift reflects the market's latest assessment of the US economic outlook and changing expectations for the Fed's future monetary policy direction. Previously, the market widely anticipated that the Fed would cut rates this year to address the risk of economic slowdown. However, recent economic data releases have shown that the US economy remains strong, and inflation remains elevated, increasing the likelihood of the Fed continuing to raise rates. Additionally, Fed officials have recently made hawkish comments, suggesting they may keep interest rates high for longer. As a result, traders have begun to adjust their expectations for a Fed rate cut, no longer fully pricing in the possibility of a cut before July. This change also indicates uncertainty in the market's judgment of the Fed's future policy direction, and the Fed's policy decisions will continue to be closely watched in the coming months.