The Federal Reserve is widely expected to announce another interest rate cut at its next policy meeting on November 7th, but the exact size of the reduction remains uncertain. While market futures favor a larger 50 basis point cut, there's still a chance for a smaller 25 basis point decrease.
will announce another cut in interest rates at the next policy meeting on Nov. 7, two days after the election. The uncertainty is whether the cut will be 25 or 50 basis points.
The 2-year yield is considered a market proxy forecast for the Fed’s target rate. On that basis, the 2-year yield’s 3.56% yield continues to imply that the central bank will reduce interest rates in the near term.The model’s current estimate of the “optimal” Fed funds rate is roughly 3.4% — sharply below the current target rate.
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