Warsh’s Rate-Cut Path Gets Narrower as Oil Surge Forces Markets to Rethink the Fed
Traders slashed bets on near-term Fed rate cuts Tuesday as oil prices surged amid the U.S.-Israeli conflict with Iran. Futures now show a 30.7% chance of a June cut, down from 49.6% last week. Fed chair nominee Kevin Warsh faces resistance to delivering the cuts President Trump wants, with officials citing persistent inflation and a stabilizing job market.