Traders expect a rate cut of less than 30 basis points in September, and the Federal Reserve may cut rates by a total of 92 basis points over the year
U.S. bond yields spiked after traders lowered their expectations for a sharp rate cut by the Federal Reserve this year after the latest data showed the U.S. economy is resilient. Traders reduced their bets that the Fed will cut rates sharply in September, expecting a cut of less than 30 basis points next month. They now expect the Fed to cut rates by a total of 92 basis points over the remainder of 2024, down from more than 100 basis points before the data was released.
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