#SECCancelsCryptoInvestmentContractRulesMeeting
Traders sharply cut their bets on Federal Reserve rate hikes, pricing in a growing likelihood that the central bank will pause or end tightening before mid‑2027 as inflation shows signs of cooling.
Markets reacted by pushing longer‑dated Treasury yields lower and boosting risk assets, while economists warned that any persistent upside surprise in prices could quickly reverse expectations.
Investors will closely watch upcoming CPI and Fed communications for confirmation that the window for further tightening is closing.
Traders sharply cut their bets on Federal Reserve rate hikes, pricing in a growing likelihood that the central bank will pause or end tightening before mid‑2027 as inflation shows signs of cooling.
Markets reacted by pushing longer‑dated Treasury yields lower and boosting risk assets, while economists warned that any persistent upside surprise in prices could quickly reverse expectations.
Investors will closely watch upcoming CPI and Fed communications for confirmation that the window for further tightening is closing.