Rate futures strengthen bets on additional Fed easing through 2026

Derivatives pricing now implies further Federal Reserve easing in 2026, underpinning risk assets while leaving markets sensitive to inflation and labour-market data surprises.

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4 days ago

Rate futures strengthen bets on additional Fed easing through 2026

Rate futures strengthen bets on additional Fed easing through 2026
In derivatives markets, Fed funds futures strengthened bets on at least two additional rate cuts in 2026 following the latest 25-basis-point move to 3.5–3.75%. The shift in probabilities supported global risk assets, particularly equities and credit, even as investors remained focused on upcoming inflation releases, labour data, and Federal Reserve communication that could still recalibrate expectations around the eventual depth and pace of monetary easing.
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  • fed funds futures
  • interest rates