Markets Price 1-in-3 Odds of Any Fed Cut in 2026 as Warsh Era Begins
U.S. CPI hit 3.8% in April, driving fed futures to price only a 1-in-3 chance of any 2026 Fed cut. Incoming Chair Kevin Warsh is seen as hawkish, while ECB policymakers signal a June rate hike. Commodity-driven dollar strength and geopolitical risk add pressure on rate-sensitive assets.
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