Fed rate cut bets hammered by U.S.-China tariff truce
Federal Reserve Chairman Jerome Powell said last week he needed 'further clarity on tariffs' before moving on interest rates.
The Federal Reserve might have found the time it needs to determine the impact of President Donald Trump's tariff strategies on the world's biggest economy, following a pause in reciprocal levies between the U.S. and China that could settle global trade tensions.
Traders are now betting that the Fed won't lower its benchmark lending rate, pegged at 4.375%, until at least September after the weekend agreement between Washington and Beijing cut tariffs on China-made goods to around 30% and levies on U.S. exports to 10%.
