Bond Traders Lose Faith in 2026 Fed Rate Cut on Oil, PPI

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Storage tanks at an oil refinery in Deer Park, Texas.Bond traders priced in lower odds of even a single Federal Reserve interest-rate cut this year as Middle East warfare put upward pressure on oil prices and a US inflation gauge rose more than expected. Markets further downgraded the chances of a rate cut as oil benchmarks approached their highest closing levels since 2022, spurred by reports an Iranian field was impaired by the latest attacks on the region by the US and Israel. Oil prices contribute to US consumer inflation in the short term via retail gasoline, where the national average is up about 30% this month.