Traders Maintain Bets on Federal Reserve Rate Cuts

(Reuters) – Traders on Wednesday kept bets on Federal Reserve rate cuts this year after Fed Chair Jerome Powell indicated that the U.S. central bank is well-positioned to wait for greater clarity before making policy changes.

Traders of short-term interest-rate futures are anticipating that the Fed will resume rate cuts in June. They predict that by the end of the year, the policy rate, currently in the 4.25%-4.50% range, will be a full percentage point lower.