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

Traders bet on Fed December rate cut after inflation data

BY Reuters | ECONOMIC | 11/13/24 08:46 AM EST

(Reuters) - Traders of contracts that settle to the Federal Reserve's policy rate moved Wednesday to price in a firmer chance of another quarter-point interest-rate cut at the central bank's meeting next month, after a government report showed consumer inflation rose in October in line with economist expectations.?

Short-term interest-rate futures contracts were pricing an 80% chance of a Fed rate cut, to the 4.25%-4.5% range, in December, up from about 60% before the data. Traders then are pricing in a slower pace of rate cuts next year, with the Fed likely stopping when the policy rate gets to the 3.75%-4% range.

(Reporting by Ann Saphir, Editing by Louise Heavens)

More Fixed Income News

Cyprus says Moody's A3 upgrade vote of confidence in economy BY Reuters |CORPORATE 02:31 AM EST
Cambodia's flagship canal in hot water as China funding dries up BY Reuters |ECONOMIC 11/22/24 11:06 PM EST
AM Best Upgrades Credit Ratings of Investors Life Insurance Company of North America BY Business Wire |CORPORATE 11/22/24 06:22 PM EST
Form 424B2 ROYAL BANK OF CANADA BY EDGAR SEC Filings |ECONOMIC 11/22/24 05:17 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