#FedRateCutExpectationsHeatUp Here’s a rundown of what’s going on around the “Fed rate-cut expectations heating up,” the risks, and what to watch:
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What’s fueling stronger expectations for Fed cuts
1. Recent rate cut & dovish forward guidance
The Fed cut rates by 25 basis points in September, taking the federal funds rate down to 4.00 %–4.25 %.
The minutes from that meeting show that “most participants judged that it would likely be appropriate to ease policy further” later in the year, provided inflation continues to ease.
Some Fed officials have already voiced support for more cuts, or