Trump pressures Fed Chair to cut rates but bond traders cautious due to strong economic data.

From Yahoo Finance: 2025-05-04 15:00:00

President Trump pressured Federal Reserve Chair Jerome Powell to cut interest rates after a strong April employment report. Bond traders, however, dialed back rate-cut bets due to the pace of hiring and positive manufacturing report. The Fed is unlikely to act soon due to above-target inflation and a strong labor market. Trump’s trade war has created market volatility, impacting rate-cut expectations. Futures contracts now predict the Fed will hold rates steady until July or September. Powell and policymakers remain cautious, monitoring inflation and the economy. Bond investors are concerned about the economic trajectory and potential Fed cuts.



Read more at Yahoo Finance: Bond Traders Swing to Powell’s Side as Trump Calls for Rate Cuts