Traders Eye Series of Fed Cuts With Bullish Bets at Risk (2)

A key question for investors this week is whether Federal Reserve officials push back against market bets on a series of interest-rate cuts extending into next year.

A quarter-point reduction is seen as a sure thing when the Fed announces its policy decision Wednesday, with a small potential for a half-point move amid signs US job growth is slowing rapidly. Indeed, President Donald Trump told reporters Sunday that he expects a “big cut” this week. But markets have also priced in reductions continuing deep into 2026 to ward off a recession.

That assumption has driven Treasury yields to ...