Markets pare bets on Fed rate cuts following U.S.-China tariff delay

Investors are reassessing views on Federal Reserve rate cuts as tariff delays between the U.S. And China lessen inflationary concerns. Initial cuts are now forecasted to begin in September, with a modest 0.50 point reduction by year’s end.

Following the tariff announcement, U.S. Bond yields increased, and stock futures showed confidence. Analysts from Citi emphasized that reducing tariffs from 145% to 30% could mitigate inflation risks and allow the Fed to remain patient.