Apr 28
FOMC: Cuts slowing, but is the Fed finished?
Financial markets have shown some signs of recovery in the past three to four weeks (see Financial Crisis update), and this has formed the backdrop for the recent strong increase in yields. Higher yields mean that the market now expects the Federal Reserve to make do with cutting its key rate by 25bp to 2% at next weekÂ’s meeting and then keeping it unchanged for the rest of the year. In other words, the pressure on the central bank to cut further has eased considerably compared to expectations
