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Investing.com -- Traders anticipate that the U.S. Federal Reserve will recommence reducing interest rates in June. This expectation comes in the wake of data revealing that inflation in March was less robust than economists had predicted.
The data, which indicated a rise in consumer prices of 2.4% in March, down from the 2.8% increase in February, has led traders to adjust their expectations. Initially, they had predicted that the Federal Reserve would lower interest rates by 75 basis points over the year.
Now, traders are expecting a full percentage point of reductions to the Federal Reserve's policy rate by the end of the year. This shift in expectations suggests a more aggressive approach to interest rate cuts by the Federal Reserve than previously anticipated.
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