Merchants slash bets on Might Fed fee lower after Trump’s tariff pause

(Reuters) -Merchants on Wednesday sharply trimmed their earlier bets on a Might begin to Federal Reserve fee cuts after U.S. President Donald Trump stated on Reality Social he was additional growing tariffs on China however pausing for 90 days the massive tariff will increase he had introduced final week for many different nations.

Merchants now see June because the way more possible begin to U.S. interest-rate cuts than Might, buying and selling in interest-rate futures confirmed. They’re nonetheless betting on a complete of 4 fee cuts by the tip of the yr.

(Reporting by Ann Saphir)