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

[Traders are inclined to bet that the Federal Reserve will only cut rates once in 2025] According to reports, as economic growth shows resilience and inflation remains persistent, traders are increasingly betting that the Federal Reserve will only cut rates once this year. The U.S. will release May CPI data on Wednesday, which is expected to rebound, strengthening the central bank’s cautious stance on further easing monetary policy as the Federal Reserve assesses the impact of tariffs. There is a general expectation that the Federal Reserve will maintain stable interest rates next week, and futures and options tracking expectations of the Fed’s policy path show that traders are taking action to unwind rate-cut premiums for the coming months. Swap traders now expect a rate cut of about 0.45 percentage points by the end of the year, which is the smallest rate cut they have anticipated since President Trump announced increased tariffs in early April.