Market Bets Soar That Fed Will Cut Rates To 2% In 2027

Market Bets Soar That Fed Will Cut Rates To 2% In 2027 Concerns about rising inflation, and the Fed hiking rates to contain it, have reversed rather dramatically.  As Bloomberg's Edward Bolingbroke observes, after months of consensus trades that the Fed's easing cycle will end in 2026, traders in US futures and options markets are suddenly piling on bets that the Fed will continue cutting rates well into next year instead of raising them.   As shown below, the key spread linked ...

By Tyler Durden