Traders bet Fed will cut policy rate by a percentage point this year

April 3 (Reuters) - Traders are betting the Federal Reserve will cut interest rates four times this year, starting with a quarter-point cut in June, after the Trump administration announced new tariffs late Wednesday that were far bigger than most had expected, prompting economists to forecast a slowdown in economic growth.

Futures contracts that settle to the U.S. central bank's policy rate rose sharply on Thursday, and now point to a year-end Fed policy rate of 3.43%. The current Fed policy rate is in the 4.25%-4.50% range.