Rate Cut Dreams Dim: Just 36% of Traders Bet on Two 2025 Fed Eases

Wall Street's rate-cut fantasy is unraveling faster than a meme stock rally.

The sobering reality

Only 36% of market participants now expect the Fed to deliver two rate cuts this year - a stark contrast to the dovish euphoria that dominated 2024. The 'higher for longer' crew is winning as inflation proves stickier than chewing gum on a central banker's shoe.

What's really in the punchbowl?

The Fed's liquidity trap has markets dancing between hope and despair. Traders who priced in five cuts last December are now rationing their optimism - Wall Street's version of temperance after a drunken spending spree.

The cynical take

Maybe Powell should just mint the damn rate cuts as NFTs - at least then the Fed could claim artificial scarcity while the economy burns. Welcome to financialization 2.0, where even monetary policy gets tokenized.