Thank you, sir, may I have another?
That’s the main takeaway for markets-based rate cut expectations following the Federal Reserve’s widely-expected ¼-point cut for its target rate announced on Wednesday. Although key Treasury yields popped yesterday (suggesting anxiety about rate cuts when inflation is edging higher and is well above the Fed’s 2% target), market signals still point to expectations that the Fed will continue to ease monetary policy. The driving factor for the Fed’s decision: a slowing labor market, which the central bank sees as the bigger risk at the moment vs. inflation.
