Since the beginning of July when the Fed began to signal its intention to cut interest rates, many EM country currencies have appreciated sharply, but most are still lower than a year ago. Emerging market countries have had varied reactions to the prospect of Fed rate cuts Source: Bloomberg. ...
Sure enough, REITs have been successful 64% of the time, even doubling on two occasions during the first 12 months after a Fed rate reduction. We'll see what happens this time around, but since July 11, REITs have clobbered the market and are the second-best sector performer. However, t...
Another Fed rate cut is now official. Here's what that could mean for mortgage interest rates.
By 2025, the Fed Funds target rate could drop to 3.25% – 3.5%. With such clear visibility for rate cuts, the outlook for consumers and investors looks positive. As long as the Fed isn't behind the curve, as it was in September 2007 when it cut, we could see continued economic growt...
1. Better economic data, fewer rate cuts We maintain that the bulk of the rise in Treasury yields despite Fed rate cuts is due to fundamentals. Various economic surprise indexes have been trending higher for months now and have been closely correlated with Treasury yields. After a surprisingly ...
"What will be more significant is the cumulative effect of a series of interest rate cuts over time." Will the Fed cut rates even further in 2024? Very likely. On Wednesday, the Fed also released its economic projections for the coming years, which shows that its members are pegging ...
There are two types of rate cuts. One is normalized and the other is if things are in trouble. We really have to differentiate between the two. In this case, the U.S. economy is actually in pretty good shape and the Fed is talking about 2% growth this year and 2% growth next year...
muted. Mortgage rates have already been easing in anticipation of a cut, for example, and most consumer credit and lending products are more dependent on your credit score than on the Fed rate. Still, this is viewed as a significant event and could build expectations for more cuts down the...
Groups like the Mortgage Bankers Association, Wells Fargo, Fannie Mae, and Moody’s all expect mortgage rates to come down a bit further as the Fed rate cuts remove volatility in the market and as“the spread”narrows. “I expect the 30-year fixed mortgage rate will be closing in on 6.0...
Fed funds futures are traded on the Chicago Mercantile Exchange and are cash-settled on a monthly basis. The fed funds rate is the benchmark interest rate the Fed uses to influence borrowing costs for businesses and consumers and the pace of economic growth. ...