Likelihood of Fed rate cut decreases as Treasury yields rise, signaling potential inflationary pressures

From Investing.com: 2024-11-13 08:43:00

Fed funds futures indicate a 59% chance of another rate cut by the Federal Reserve. The likelihood has dropped from 71% since Trump’s election. The 2-year yield has risen to 4.34%, signaling fading hopes for more rate cuts. The spread between the Fed funds target rate and 2-year yield is now -24 basis points, the narrowest in over a year. Trump’s economic policies, including tariffs and deportations, are seen as potentially inflationary. Economist doubts the need for more rate cuts, while Fed official Neel Kashkari suggests inflation surprises could alter the Fed’s decision.



Read more at Investing.com: Rising Treasury Yields Raise Doubts About Another Fed Rate Cut