Bonds Decline as Fed Signals Fewer Rate Cuts in 2025

Reported 3 days ago

The US Treasury market experienced a significant drop as traders adjusted their expectations for interest rate reductions next year, following updated forecasts from the Federal Reserve. The Fed's decision to cut interest rates by a quarter-point was accompanied by projections indicating a slower pace of future cuts, leading to an increase in yields, particularly among shorter maturities. The Fed's revised outlook suggests higher economic growth and inflation, prompting concerns about the impact of potential fiscal policies from the incoming Trump administration on the market.

Source: YAHOO

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