Traders say the Federal Reserve has finished raising interest rates and are betting it will start cutting rates from the end of June.
Jerome Powell
Traders believe the Federal Reserve has finished raising interest rates and will start cutting them in the summer, at the end of June, after a government report showed on Tuesday that job offers in the United States in February fell to the level lowest in almost two years.
Fed interest rate futures prices following the release of the monthly JOLTS report reflected increased bets by traders that rates would stay on hold in May.
At present, the operators see a 57% probability that there will be no changes after the meeting on May 2 and 3, compared to 43% the day before. The probability of a 25 basis point rate hike is 43%.
Based on interest rate futures prices, the Federal Reserve would begin to ease its monetary policy as early as July and would reduce its reference rate to around 4% by the end of the year.
Source: Ambito
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