Markets’ hopes for Fed interest rate cuts are rapidly fading away

• As both energy prices and inflation fears pop, expectations for Federal Reserve interest rate cuts are sliding.
• Traders have taken even a September cut off the table and now see only one coming, in December. There are no additional cuts priced in until well into 2027 or even into the early part of 2028.

As both energy prices and inflation fears pop, expectations for Federal Reserve interest rate cuts are sliding.

Traders in recent days have abandoned hopes of an early summer easing from the central bank, a change in thinking that coincided with the U.S.-Israel attacks on Iran and a burst in oil prices to around $100 a barrel.

Source: https://www.cnbc.com/2026/03/12/markets-hopes-for-fed-interest-rate-cuts-are-rapidly-fading-away.html