🚨 RATE CUT BETS DROP AS INFLATION FEARS RISE Markets are rapidly repricing as rising energy costs push inflation expectations higher and rate cut bets lower. Latest data from Kalshi shows: • 1 cut: ~25% • 2 cuts: ~24% • 3 cuts: ~19% and falling At the same time: 5-year inflation expectations rose to 2.54% Odds of 2+ Fed cuts fell to 57% (from 79%) 10-year yields climbed to ~4.1% The shift reflects a fast market rethink as energy prices rise, reinforcing a more cautious outlook from the Federal Reserve. https://kalshi.com/markets/kxratecutcount/number-of-rate-cuts/kxratecutcount-26dec31?utm_source=walterbloomberg(*Walter Bloomberg)