[Treasury traders give up betting on Fed interest rate cuts this year] Treasury traders are abandoning their bets on Fed interest rate cuts this year, given that the Fed has left interest rates unchanged and hinted at tightening action to follow. Interest rate swap contracts linked to the Fed session now expect the policy rate to peak at 5.32 per cent in September and the contract rate to jump to about 5.23 per cent in December 2023. On Wednesday (June 14) in the morning US Eastern time (before the announcement of the resolution), the December contract interest rate was about 15 basis points lower than the expected peak, meaning the maximum rate cut was 25 basis points. Long-term interest rate contracts show that the Fed will loosen policy in 2024. "if you raise the forecast on the bitmap by 50 basis points, they want to tighten the financial environment, which is what we are seeing right now," said Michael Gapen, who is in charge of US economic research at Bank of America.