Will The Trump Factor Influence Markets And The Fed This Week?

2025-01-27 14:11:00 ET

Summary

• Using Fed funds futures as a guide suggests that the central bank will leave its target rate unchanged at a 4.25%-to-4.50% range at Wednesday’s policy announcement.
• The Treasury market has recently been pricing in a relatively neutral outlook for Fed rate changes, based on the spread for the 2-year yield less the effective Fed funds rate.
• Some analysts are looking for a rate cut in March and June, but Trump policies are the complicating factor.

Investors this week will be keenly watching how or if the Federal Reserve and the bond market cooperate with Donald Trump’s order for lower interest rates. Although the central bank is unlikely to make decisions based on directives from the White House, the Trump 2.0 policy agenda will surely be a factor, one way or another....

Read the full article on Seeking Alpha

For further details see: