(Reuters) -Traders pulled back slightly from bets the Federal Reserve will cut interest rates by a full percentage point this year after a government report showed the economy contracted by an annualized 0.3% last quarter as American businesses rushed to buy imported goods ahead of expected tariffs.
Still, futures contracts that settle to the Fed’s policy rate continued to point to a start to Fed rate cuts in June, with a total of four quarter-point reductions likely, bringing the rate to the 3.25%-3.5% range by year-end.
(Reporting by Ann Saphir; Editing by Andrew Heavens)
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