Before the Federal Reserve announced the interest rate decision, traders' expectations for a rate cut cooled down: betting on only three rate cuts this year.

Intelligent Financial APP learned that traders are betting that the Fed's rate cuts will slow down this year, as the resilience of the economy forces policymakers to wait longer before significantly easing monetary policy more than previously expected in 2026. Just the day before the Fed announced its latest interest rate policy decision, the money market expected three rate cuts of 25 basis points this year, one less than in early April. Traders also predict another 50 basis point rate cut next year, which is the highest expected rate cut in 2026 in the current loose cycle.