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Markets expect the Fed to resume interest rate cuts as early as June

Online reports that in light of Trump's chaotic tariff policies and federal layoffs, bond traders are signaling the growing risk of the U.S. economy stalling. Less than two months into Trump's presidency, speculation that he would inject stimulus measures into the expansion of the U.S. economy and continue to exert upward pressure on U.S. Treasury yields is quickly being put to the wind. Instead, traders have been buying large quantities of short-term U.S. Treasurys, with yields on two-year bonds falling sharply since mid-February and expectations that the Federal Reserve may resume interest rate cuts as early as June to prevent the economy from deteriorating.

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