Investing.com -- Bond traders have scaled back expectations for Federal Reserve interest rate cuts this year as rising oil prices fuel inflation concerns, while President Donald Trump publicly called for immediate rate reductions.

Interest-rate swaps linked to the Federal Reserve’s policy meeting dates traded on Thursday at levels pricing in just 20 basis points of easing by year-end, down from around 30 basis points late Wednesday. As recently as February 28, the swaps fully priced in at least 50 basis points of easing, equivalent to two quarter-point cuts.

President Trump took to social media on Thursday to criticize Federal Reserve Chairman Jerome Powell, referring to him as Jerome "Too Late" Powell. Trump questioned Powell’s whereabouts and demanded that the central bank drop interest rates immediately rather than waiting for the next scheduled meeting.

Investors have demanded higher yields since the United States attacked Iran on February 28, seeking compensation for the risk that the resulting surge in oil prices will lead to resurgent inflation.

The Treasury selloff extended on Thursday, with 2-year yields rising 10 basis points on the day to reach 3.76%.

The shift in market expectations reflects growing uncertainty about the Federal Reserve’s ability to cut rates amid inflationary pressures stemming from elevated oil prices following recent geopolitical events.

Trump’s pick to lead the Fed, Kevin Warsh, is still waiting for Senate confirmation.