Fed Cuts Get Pushed Further Back on Horizon

Fed Cuts Get Pushed Further Back on Horizon

Traders are becoming more skeptical that the Federal Reserve will deliver another interest-rate cut any time soon.

Yesterday, the odds were narrowly in favor of the next quarter-point reduction coming in July, according to the CME FedWatch tool. Today, traders say the move is more likely to come in September.

There wasn’t an obvious trigger for the event overnight, but the reason boils down to inflation proving stickier and the economy more resilient than had been expected. Minutes from the Jan. 30 Fed decision published later today could add more insight into the Fed’s thinking.