Traders add to bets on Fed rate cuts after soft inflation data

With an inflation rate drop to 2.4% in March from 2.8% in February, traders anticipate the Federal Reserve to cut rates in June. The market predicts total reductions of up to 1% by year-end.

Originally, expectations were set for just a 0.75% decrease in the Fed’s policy rate throughout the year. However, the new data has led to increased bets on deeper cuts.