Markets React as Tensions Rise Between White House and Federal Reserve Over Interest Rate Pressure 
U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
RBA Deputy Governor Says November Inflation Slowdown Helpful but Still Above Target 
ECB Signals Steady Interest Rates as Fed Risks Loom Over Outlook 
New York Fed President John Williams Signals Rate Hold as Economy Seen Strong in 2026 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
After U.S. Federal Reserve policymakers hinted at looming rate cuts at yesterday’s meeting where the central tendency of the rate forecasts by FOMC participants declined by 50 basis points, the bond market is pricing 3 rate cuts in the next 9 months.
- The very next cut is now priced in July with 100 percent probability.
- The second rate cut is priced in December with 95.3 percent probability.
- The third rate cut is now priced in March 2020 with 83.2 percent probability.
While the market is pricing three rate cuts before the 2020 election in the United States, the Federal Reserve policymakers have forecasted two rate cuts.
