Wall Street Today | Investors bet Fed will need to cut interest rates next year to bolster the economy

As the Federal Reserve prepares to meet this week, Wall Street investors are betting that officials will raise interest rates aggressively through the end of the year—and then turn around and start cutting them about six months later.

"We see more volatility ahead until central banks take sides in the stark trade-off between growth and inflation they are facing," said strategists at BlackRock Investment Institute in a note Monday. "We think the Fed will overtighten rates and cause acute damage to growth before pivoting."

Americans are driving less, combining errands and shopping or dining out less since gasoline prices rallied in March, according to a survey by auto club AAA. A survey of 1,002 US adults last month showed 64% of Americans adapted their driving or lifestyle habits in response to high fuel prices. Of these, 88% said they drove less, 74% said they combined errands while more than half reduced shopping or restaurant visits.

Russian state-owned energy producer Gazprom PJSC said gas exports through the vital Nord Stream pipeline to Germany would drop to about a fifth of the pipe's capacity, blaming sanctions-related problems with turbines that have already reduced flows. The fresh reduction in the pipeline's capacity—from 40% currently to 20%—is expected to take effect Wednesday, Gazprom said.