Growing fears that the U.S. might be approaching a recession have traders continuing to expect rate cuts from the Federal Reserve this year, despite policy makers’ projections from March that signal otherwise.While officials’ median estimate points to the likelihood that rates will need to end the year slightly above where they are now, traders see no chance of that happening. Instead, they’re pricing in an almost 50% likelihood that the Fed will pause in May and June — leaving the fed-funds rate between 4.75% and 5% — before rate cuts begin in the second half of the year.The divergence reflects “a difference in baseline…
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