Traders have lowered expectations for two U.S. interest rate cuts in 2026 after President Trump hinted at nominating a replacement for Fed Chair Jerome Powell other than Kevin Hassett. CME FedWatch data shows an 11.8% chance of no rate cuts in 2026, with 25 and 50 basis point cuts expected at 30.3% and 32.1%, respectively. Trump's recent remarks suggest uncertainty around the Fed Chair succession, affecting market projections on monetary policy.
