Traders see virtually no chance interest rates will end up where Fed thinks in 2023

Concerns that the U.S. might be approaching a recession have traders expecting interest rate cuts from the Federal Reserve this year, despite policy makers’ projections from March that signal otherwise.While the median estimate from Fed policy makers points to the likelihood that rates will need to end the year slightly above where they are now, traders see just a 0.1% chance of that happening as of Friday. Instead, they’re pricing in a 99.9% likelihood that the fed-funds rate target will be at or below its current range of 4.75% and 5% by December.The divergence reflects “a difference in baseline scenarios,” FHN Financial…