Investors Dial Back Fed Rate-Cut Bets -- WSJ

Dow Jones03-05 22:58

By Sam Goldfarb

Rising energy prices and firm economic data are causing investors to quickly dial back their bets on interest-rate cuts this year.

-- Interest-futures show investors now see a less than 50-50 chance of two or more cuts in 2026, according to CME data.

-- That's a sharp drop from the 79% chance indicated at the end of last week.

A jump in oil and gas prices, spurred by the U.S.-Israeli attacks on Iran, has played a major role in the changing odds. Investors wager that higher inflation will make it harder for the Federal Reserve to ease monetary policy.

A run of solid economic reports has also helped, including better-than-expected readings on U.S. manufacturing and service-sector activity. Plus, data out Thursday showed weekly jobless claims remained subdued.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

March 05, 2026 09:58 ET (14:58 GMT)

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