Traders tend to bet that the Federal Reserve (FED) will only cut interest rates once in 2025.

[Traders tend to bet that the Fed will cut rates only once in 2025] Traders are reportedly increasingly betting that the Federal Reserve will cut interest rates only once this year amid signs of resilient economic growth and lingering inflation. The US CPI data for May will be released on Wednesday, which is expected to pick up, reinforcing the central bank’s wait-and-see stance on further monetary easing as the Federal Reserve assesses the impact of tariffs. The Fed is widely expected to keep interest rates steady next week, and futures and options tracking expectations for the Fed’s policy path show traders are moving to lift the premium on rate cuts in the coming months. Swap traders now expect a rate cut of about 0.45 percentage points by the end of the year, the smallest rate cut they have expected since President Trump announced high tariffs in early April.