After Trump criticizes Powell, bond traders increase bets on Fed's 2026 rate cut

According to a report by Golden Finance, bond traders are increasing their bets that the Federal Reserve will cut interest rates more aggressively next year, as the market speculates that the Fed's final leadership change will bring about the looser monetary policy demanded by US President Donald Trump. This confidence is reflected in the yield spread between SOFR futures due in December 2025 and December 2026, which reflects the market's expectation of the Federal Reserve's rate cuts during that period.