Small font size A Larger text size A Largest text size A

Traders trim bets on Fed rate cuts in 2025 as early election results tallied

BY Reuters | ECONOMIC | 11/05/24 11:19 PM EST

Nov 5 (Reuters) - Traders trimmed bets Tuesday on Federal Reserve interest rate cuts next year, as early tallies for the U.S. presidential election rolled in through the evening.

Traders of futures contracts tied to the Fed's policy rate continue to bet the Fed will cut the policy rate by a quarter of a percentage point this week and again in December, but now see the Fed likely stopping its rate cuts after just two more such cuts in the first half of 2025, bringing the rate to the 3.75%-4% range. (Reporting by Ann Saphir; Editing by Christian Schmollinger)

More Fixed Income News

What's Going On With Vanguard S&P 500 ETF (VOO)? BY Benzinga |ECONOMIC 01:07 PM EST
BRIEF-Bank of Canada to auction C$25.5 billion of T-bills on Jan. 14 BY Reuters |ECONOMIC 01:04 PM EST
GLOBAL MARKETS-Stocks lose ground, US yields rise after strong US data BY Reuters |ECONOMIC 12:47 PM EST
SpineGuard Completes a Bond Financing to Support the Deployment of Its New Products BY Business Wire |CORPORATE 12:00 PM EST

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article