Traders step up Fed rate cut pricing after Trump tariffs announcement ...0

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It's not a lot but if anything, it suggests that traders are now maybe coming around to the idea that the Fed might need to do more if the US economy crumbles down.

Sure, recession risks mean that they can pivot back towards a rate cut again. But Trump's tariffs also threaten to stir up inflationary pressures and a stagflation environment is not one the Fed would like to find itself get stuck into at this point.

This article was written by Justin Low at www.forexlive.com.

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