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Markets React as Fed Rate Cut Expectations Shift

5/30/2025

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Story summary
  • Markets are recalibrating expectations for Federal Reserve rate cuts, affecting stock prices and the US dollar.
  • May FOMC minutes indicate the Fed's cautious stance, pending clearer economic indicators amid uncertainty.
  • GDP growth forecasts for Q2 show significant variation, with a consensus estimate of 2.2%.
  • Upcoming inflation data could impact future rate decisions, possibly postponing anticipated cuts.