The Fed is still behind the curve...
The market is now pricing in a Fed Funds Rate of 3.8% by the end of 2024, expecting significantly more easing than the Fed's projection of a move down to 4.6%. Source: Charloe Bilello
Big move down in Treasury yields yesterday after the FED projected 75 bps of rate cuts in 2024...
1-Year: 4.94%, down 55 bps from Oct high. 2-Year: 4.46%, down 73 bps from Oct high. 10-Year: 4.04%, down 94 bps from Oct high. Source: Charlie Biello
The Fed is finally giving up...
Fed holds rates steady but indicates three cuts coming in 2024. Indeed, the Dot Plot is adjusted down significantly more dovishly than expected, narrowing the gap to the market's expectation significantly... The US 10 year is down 20bp to 4%, the Dow surges by 300 points!
⚠️BREAKING:
*FED'S POWELL: IT IS NOT LIKELY WE WILL HIKE FURTHER *POWELL: POLICYMAKERS ARE THINKING AND TALKING ABOUT WHEN IT WILL BE APPROPRIATE TO CUT RATES Source: www.investing.com
The Fed just triggered the biggest stock-buying program since Nov 2022...
Source: Bloomberg, www.zerohedge.com
Too much, too fast? Markets is seeing the FED being the most aggressive in terms of rate cuts next year
Source: DB, TME
Losses at the Fed have now passed $125 billion
Source: Win Smart, CFA
The Federal Reserve lent out roughly $200B in overnight cash on Wednesday through its standing repo facility
This is the highest amount since the onset of covid. What's going on? Is another repo crisis looming? Source: Win Smart, CFA
