Traders expect interest rate cuts due to recession fears from Trump's tariffs

From Yahoo Finance: 2025-04-03 18:31:00

Traders predict interest rate cuts due to Trump’s tariffs, with a 100-basis point drop expected by December. JPMorgan economist warns of possible recession as consumer spending shrinks. Fed may unwind high interest rates to revive economy. Odds of rate cut in May increase to 26%. Market anticipates recession with 54% chance of US downturn. Morgan Stanley expects no rate cut this year.

Read more: Rate-cut bets are soaring as traders see rising recession odds