The Federal Reserve plans rate cuts, potentially benefiting consumers and traders

From Yahoo Finance: 2025-06-30 11:00:00

The Federal Reserve plans three rate cuts by the end of 2025, potentially lowering borrowing costs for consumers and boosting Treasury prices. Seasonal trends suggest Treasury prices typically rise in July, driven by market dynamics and investor behavior. Geopolitical tensions, like the Iran-Israel ceasefire, could prompt a flight-to-quality response into Treasuries.

As the Fed signals rate cuts, traders can capitalize on Treasury price movements. Instruments like 10-Year Treasury Futures, Micro-Yield Treasury Futures, and the TLT ETF offer exposure to Treasury yields. Options on these assets can provide leveraged exposure to price movements. Understanding interest rates as an asset class can enhance portfolio diversification and unlock new opportunities.

Read more: Lower Interest Rates in the 3rd Quarter? Opportunities for Traders and Consumers