Fed Seen as More Likely to Cut Than Hike -- Market Talk

Dow Jones06-09 00:16

1216 ET - Interest rate cuts by the Fed are more likely than increases, Citi economists write. CME's FedWatch tool shows at least one hike this year as the scenario most investors are pricing in. Robust labor data and war-driven inflation acceleration drive the hawkish outlook. Citi argues, however, that unemployment is bound to increase, becoming supportive of cuts. Inflation, in turn, is boosted by AI-linked prices, Citi says. An eventual normalization of global oil trade that lowers crude prices "can lead to a rapid dovish repricing and help open the door to cuts," Citi says. The 10-year Treasury yield rises to 4.552% from an intraday low of 4.518%. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

June 08, 2026 12:16 ET (16:16 GMT)

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