Market Ponders ‘Radically Different’ Rate Paths At Fed Crossroads

Last month's dramatic hawkish repricing across the US rates complex found traders fading the odds of Fed cuts in the back half of 2023. Those "cuts" were a point of contention between markets and policymakers. Fed officials repeatedly insisted that the idea of outright easing by year-end was far-fetched, but the market wasn't buying it. Not entirely, anyway. The disparity between speculation on an almost immediate pivot to rate cuts once terminal is achieved and officials' "higher for longer"