Fed Rate Consensus Flips as 31% of Traders Now Expect Higher Rates Through 2026
Interest rate markets have reversed expectations from December's forecast of two cuts in 2026, with 31% of traders now anticipating rates will rise to 3.75-4% by year-end. Just 0.2% expect the cuts to 3.25-3.5% that were consensus three months ago. The policy stability coincides with a 30% collapse in retail trading activity since recent geopolitical conflict began, shifting market control to institutional investors.
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