Traders Sense an Inflation-Constrained Fed Is Back

Published on November 7, 2024

The Federal Reserve is widely expected to lower its benchmark federal funds rate by a quarter of a percentage point on Thursday to a range of 4.5% to 4.75%. The big question is how much lower the Fed might go from there during this rate-cutting cycle. The bond market suggests it won’t be as low as some expect or as low as policymakers signaled less than two months back.