A still-strong job market will keep the Federal Reserve from cutting interest rates until September, and from delivering more than two quarter-point rate cuts all year, traders bet on Thursday

The Federal Reserve has room to cut interest rates as elevated uncertainty and the impact of tariffs ripple across the economy, said Anne Walsh, chief investment officer of Guggenheim Partners Investment Management.

Treasury Secretary Scott Bessent said Tuesday night that he thinks the Federal Reserve could cut interest rates by September or 'sooner' because of mild inflation thus far from President Trump’s tariffs.