Investors have trimmed bets on the number of interest rate cuts this year as surging petrol prices and a softening jobs market complicate the Federal Reserve’s ability to boost the US economy while containing inflation.
Many had predicted the Fed would make two cuts ahead of crucial midterm elections in November when US voters will pass judgment on whether the president has addressed what many perceive to be a cost-of-living crisis.
But bets on Fed cuts have fallen this week.
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