Futures markets are betting the Fed won t cut rates at its policy meeting next week, but if fears of a trade war-induced recession come true, the Fed could initiate a series of rapid rate cuts in June. Traders are betting the Federal Reserve will cut interest rates quickly as the economy slumps following President Donald Trump's weekend speech on a "transition period" for the economy, with futures markets increasingly expecting successive rate cuts in June, July and October as Fed officials face the dilemma of rising inflation and a weakening economy. US stocks and Treasury yields also tumbled on Monday amid concerns that Mr. Trump's comments heralded an impending recession. Federal Reserve Chairperson Jerome Powell said on Friday that the central bank is in no hurry to cut interest rates because the labor market remains strong, inflation is bumpy on the road to its 2 percent goal, and there is significant uncertainty about the impact of Trump's trade, fiscal, immigration and regulatory policies. Economists say these policies are likely to push up prices and slow the economy, at least in the short term. Economists at Goldman Sachs on Monday cut their forecasts for U.S. economic growth to 1.7 percent and raised their inflation forecasts. (Golden Ten)