Traders Brace for Fed Rate Cuts Amid Trump’s Trade Turmoil

Uncertainty surrounds the US economy as President Trump’s trade policies continue to disrupt markets and cloud the outlook. The Federal Reserve is facing a dilemma: should they cut interest rates amid heightened volatility, or maintain current levels? Traders are reacting by hedging against potential shifts in Fed policy. Hedge funds have reaped significant profits from recent market movements, capitalizing on dollar weakness and volatile cross-asset trades. However, commodities and fixed income continue to present risks as concerns about surging debt levels intensify.