Bond Market Embraces Stability Before Series of Chaotic Events

Traders seem to have finally warmed to the idea that the Federal Reserve’s likely interest-rate cut on Wednesday will be its last for some time.

The central bank is widely expected to lower its target policy rate a quarter-point next week to 1.50%-1.75%. That would be the third in a series of cuts that Chairman Jerome Powell has described as a “midcycle adjustment” to extend this historic economic expansion. He’s had a tough time selling that plan to rates traders, who’ve consistently bet on easier policy than the Fed has signaled all year.