Traders Bet Against June Start to Fed Rate Cuts After March CPI Report, Favor September Start with Market-Based Probabilities
Traders are shifting their bets against a June start to Fed rate cuts following the March CPI report, with odds of a June rate cut decreasing significantly. Market-based probabilities now indicate a later start to rate cuts, with September being favored. Interest rate futures are now pricing in fewer rate cuts for 2024 compared to previous expectations.
Sources
The Kobeissi Letter
BREAKING: Interest rate futures are now pricing in just 2 interest rate cuts for the entire 2024. This is the first time that markets are pricing-in LESS rate cuts than Fed guidance. Just 4 months ago, markets saw 6-8 rate cuts in 2024 with cuts beginning in March. Odds of a… https://t.co/349Px6HvZ2
Lisa Abramowicz Traders are now pricing in an 18% chance of a June Fed rate cut and fewer than two cuts this year, from a 53% chance of a June move yesterday. https://t.co/rWYCBQEl1B
PiQ ⚠️ FED SEEN WAITING UNTIL SEPTEMBER TO CUT RATES Full Story → https://t.co/jLKZkQbM6x The Federal Reserve will wait until September before starting to cut interest rates, traders bet on Wednesday, after a government report showed inflation was stronger than expected last… https://t.co/sfxyfB3nxh
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