Planet Daily News: Due to the U.S. government's tariff policies raising concerns about global economic recession, traders have increased their expectations for Federal Reserve rate cuts this year, with some even believing the Fed might cut rates before its next meeting. Overnight interest rate swap markets indicate that the market expects the Fed to cut rates by 125 basis points by the end of the year, equivalent to five 25-basis-point cuts. Although this expectation subsequently declined, the increase was significant. Compared to last week, the market has only fully digested expectations of three rate cuts. Swap contracts also show approximately a 40% probability of the Fed cutting rates by 25 basis points next week, which is well before the Fed's next scheduled policy meeting on May 7th. Emergency rate cuts are extremely rare, with the Fed's last emergency rate cut occurring in early 2020 during the COVID-19 pandemic market disruption. In August last year, when U.S. stocks fell sharply due to yen carry trade unwinding, traders briefly expected the Fed to cut rates between meetings, but policymakers took no action. (Jinshi)