The Fed is only meeting six more times this year and traders are pricing in five 25 bps rate cuts by year-end now. Rising fears of a recession in the US is exacerbating the pricing in the past week. For some context, traders were only pricing in ~76 bps of rate cuts for the year before Trump's tariffs announcement.
Traders move to price in five Fed rate cuts for the year now
- The odds of a May rate cut have moved up to ~61%
