"Traders Bet Against Fed as Powell Signals Potential Rate Cut"

Traders have abandoned hopes for a March interest rate cut by the Federal Reserve due to strong economic data and firm messaging from Fed Chair Jay Powell. While the Fed sees three rate cuts as their baseline scenario for this year, traders are pricing in five cuts, leading to volatility and potential losses if the Fed sticks with its plans. The tension between market expectations and the Fed's signals on interest rate policy has also made it challenging for corporate borrowers to plan funding, fueling a wave of opportunistic borrowing.