(Bloomberg) -- Traders are cutting back predictions for how much the Federal Reserve will raise interest rates over the next year amid a slide in global stocks.
Money markets are now fully pricing in only two rate increases by the end of next year and around 80 percent of a third, after having priced in more than three hikes on Tuesday. The odds of the next move in December has dropped to 74 percent from 81 percent.
The Fed has boosted its benchmark rate eight times since December 2015 as it removes accommodation amid an improving U.S. economy with inflation staying in check. The pace of tightening has drawn criticism from President Donald Trump, who said after a stock slide on Wednesday that the central bank is “going loco” for raising rates so much.
The Nasdaq 100 Index tumbled more than 4 percent on Wednesday, its worst day in seven years, while shares in Asia tumbled Thursday and European stock futures declined.
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