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Traders bring back bets on two Fed rate cuts in 2025

BY Reuters | ECONOMIC | 08:50 AM EST

(Reuters) - Traders of interest-rate futures on Wednesday were pricing close to even odds the Federal Reserve will cut interest rates twice by the end of this year, with the first reduction to come in June.

Government data showed consumer prices rose 2.9% in the 12 months through December, in line with economists' expectations.? ? Before the report, interest-rate futures were pricing a single quarter-point interest-rate cut this year, no sooner than June.

(Reporting by Ann Saphir)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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