Cautious Outlook for Bond Traders Amid Fed and Inflation in 2025

Reported 1 day ago

As the Federal Reserve approaches its final policy meeting of 2024, with expectations of a 25 basis point rate cut, bond traders are advised to remain cautious. Economists predict slower inflation driven by reduced wage growth and lower housing costs, leading to overall inflation moderation over the next year. Despite this, market sentiment appears overly hawkish, forecasting a modest decline in Treasury yields, potentially stabilizing around a 4% ten-year yield in 2025.

Source: YAHOO

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