By Michael Msika, Bloomberg Markets Live reporter and strategist
Equity investors are not in a rush to buy the dip given all the noise on trade and signs of a potential economic slowdown. Now comes the US Federal Reserve, but markets shouldn’t expect the central bank to come to the rescue.
Now that investors have realized US President Donald Trump’s tolerance for the equity market selloff is much higher than expected, they are pricing the “Trump put” lower. But the opposite has happened with the “Fed put”: Rate-cut expectations have increased this month. According to the latest Bank of America fund manager survey, 68% of respondents expect two or three cuts in 2025, up from 51% in February, and the swap markets are pricing the same.
