Traders Adjust Fed Rate Cut Bets

(Reuters) – Traders trimmed bets Tuesday on Federal Reserve interest rate cuts for next year as early tallies for the U.S. presidential election came through the evening.

Futures contracts linked to the Fed's policy rate still indicate a quarter-point cut this week and another in December. However, traders now expect the Fed to halt rate cuts after two more in the first half of 2025, bringing the rate to the 3.75%-4% range.