Traders expect the Federal Reserve to cut interest rates by 25 basis points in September, November, and December respectively.

Odaily Odaily News: Federal Reserve policymakers are expected to keep interest rates at 5.25%-5.50% next week, and will not start cutting interest rates by 25 basis points in succession until September. The latest data shows that the US economy regained its growth momentum last quarter. Before the data was released, traders expected the Fed to cut interest rates next week at about 9%, but after the government report showed that the economy grew 2.8% last quarter, faster than expected and twice the growth rate in the first quarter of this year, the probability dropped to below 7%. Ryan Sweet, an analyst at the Oxford Economics Institute, wrote that the reacceleration of the economy "should help ease concerns about whether the economy can continue to expand and calm rumors that the Fed needs to cut interest rates in July." Traders continue to expect the Fed to cut interest rates by 25 basis points in September, November and December, respectively, while they have also reduced their bets that the Fed may cut interest rates further. Previously, traders believed that the probability of the Fed cutting interest rates by more than 25 basis points before the September meeting was about 21%, which has now dropped to about 15%. (Jinshi)