Traders have increased their bets on the Federal Reserve implementing at least two interest rate cuts by the end of 2025. This shift in market expectations follows disappointing ADP payroll data, which has influenced sentiment toward a more accommodative monetary policy. Correspondingly, U.S. short-term interest rate futures have risen as traders anticipate these potential rate reductions. The market adjustment reflects growing confidence that the Federal Reserve will ease monetary policy later this year to support economic conditions.