Traders See Three Fed Cuts in 2025 as Tariffs Add to Growth Risk
Traders are increasingly betting on interest-rate cuts from the Federal Reserve due to concerns about the impact of US trade tariffs on global economic growth. The imposition of new tariffs on Canada, Mexico, and China has sparked worries that the US economy may be slowing down. Market participants are now pricing in three quarter-point rate cuts by 2025, marking a significant shift in expectations.
- As markets adjust to the reality of tariffs, they are also beginning to question the true cost of protectionism: will the benefits of higher tariffs outweigh the costs of a slower-growing economy?
- What role will the Fed's response play in shaping the global economic landscape as trade tensions escalate and central banks grapple with the implications?