Analysis
September 18, 2024 2:11 PM
As the Federal Reserve considers a 25 basis point rate cut, experts warn of potential sell-offs in U.S. Treasuries. Glen Capelo, managing director of fixed income at Mischler Financial Group, highlights the influence of Powell's press conference on market reactions.
Michael Rosen, executive partner and chief investment officer of Angeles Investments, argues that the bond market is pricing the Fed's rate cuts too aggressively. The market anticipates a 250 basis point cut next year, a scenario Rosen believes feasible only in the event of an economic recession. He predicts that short-term U.S. Treasury yields will decline less than market expectations, while long-term yields may rise.
The Federal Reserve's decision and subsequent market reactions remain critical as investors navigate the implications of potential rate adjustments and their impact on the bond market.
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