As expected, the Federal Open Market Committee (FOMC) decided to keep the target range for the federal funds rate at 5.25 to 5.50 percent for the fifth consecutive meeting, as it wants to "gain greater confidence that inflation is moving sustainable toward 2 percent" before beginning to cut ...
Take a look at the chart below, which shows the total returns (price plus dividends) of the different market sectors in the 12-month period following the first rate cut of the cycle. Note that green/red shading doesn't signify positive/negative performance, but instead whether the sector out...
As has been widely expected after the latest economic data, the Fed decided to keep its policy rate steady for the seventh consecutive time at its June meeting, while also dialing back expectations for rate cuts in 2024. Following a two-day meeting of the Federal Open Market Committee (FOMC...
The line chart shows the net changes in the Federal Reserve’s overnight federal funds rate and the 10-year U.S. Treasury yield from September 10 to November 13, 2024. The Federal Reserve has cut its policy rate by 75 basis points over this period, but the longer-term 10-year Treasury...
Markets expect a steady rhythm of rate cuts Historical U.S. interest rate and market expectations The line chart shows the U.S. policy interest rate from March 2022 through August 2024, and market expectations for the rate through July 2025. After rising from 0.25% in March 2022 to 5.50% ...
Emerging market countries have had varied reactions to the prospect of Fed rate cuts Source: Bloomberg. World Currency Ranker (WCRS). Data from 7/1/2024 to 9/25/2024. Bar chart shows the return of different EM currencies.Past performance is no guarantee of future results. ...
No More Cuts. For Now… Indeed, it seems that the Fed has exhausted its potential for further interest rate cuts in the near future. This is what the U.S. central bankers signaled in the statement. In September, they wrote: As the Committee contemplates the future path of the target ran...
With less expectation for additional interest rate cuts in 2025, there may not be as much reason to lock in returns on cash now, said Ken Tumin, founder of DepositAccounts.com. Moreover, high-yield online savings account rates are generally higher than what CDs now offer, he said....
As the Fed's rate cuts approach, questions remain about the continued strength of the tech sector and which industries will be most impacted. To explore these issues, we spoke with Tim Anderson, Managing Director at TJM Investments and NYSE trader, in this edition of "Wall Street Frontline."...
Wednesday’s stronger-than-expected US Jan CPI report curbed expectations for additional Fed interest rate cuts and is bearish for precious metals. Wednesday’s rally in the dollar index to a 1-week high and higher global bond yields were also bearish for precious metals. In addition, h...