The Fed cuts rates by 25 basis points, signaling potential end to rate cutting cycle.

From Investing.com: 2024-12-19 02:28:00

The Fed cut rates by 25 basis points, surprising the market with its stance on future rate cuts. Analysts expected more cuts than the Fed Funds Futures and swaps markets were pricing in. The Fed swaps market projects just one rate cut next year, with a 4% Fed Funds rate by 2025. Yields are rising, with the 10-year yield potentially reaching 6%. The yen strengthened, putting the Bank of Japan in a tough spot. Credit spreads widened, impacting the S&P 500. Stock indices dropped, with small caps erasing post-election gains. The Fed’s rate-cutting cycle may be over, signaling a shift in the market.



Read more at Investing.com: The Fed’s Rate Cutting Cycle May Already Be Over