Fixed income investors may be feeling a little perplexed lately. After months of anticipation, the Federal Reserve (Fed) finally cut interest rates last week, but since then, Treasury yields are generally higher. The reason? Not only were markets expecting the rate cut, but the bond market also expects even more rate cuts over the next 12 months. Many financial markets are forward-looking, so these markets tend to price in the prospects of, in this case, rate cuts before they actually occur.   

Bond markets are currently pricing in an aggressive rate cutting cycle by the Fed with the expectation that the fed funds rate will be be

Increased volatility over the last several weeks has reshaped the equity market leaderboard. Capital has flowed out of technology and other cyclical areas of the market and into more defensive sectors. Signs of slowing economic growth, notably in the labor market, weak seasonality, political uncertainty, elevated valuations, and frothy sentiment — especially in the big tech, artificial intelligence, and semiconductor space — have all been contributing factors behind the rotation. The silver lining to this backdrop (aided by cooling inflation data) is a highly anticipated monetary policy pivot from the Federal Reserve (Fed) next we

Key Points

- It’s not about “if” but “how much” the Federal Reserve (Fed) will cut rates at the upcoming meeting. The European Central Bank (ECB) is also expected to cut as central banks sync up.
- The most likely scenario is the Fed will cut by 25 basis points in the upcoming meeting and reserve the potential for more aggressive action later this year if the job market deteriorates further.
- As we highlighted in our September 9 Econ Market Minute, investors should expect interest rate volatility as the Fed adjusts policy.
- Immediately following the inflation release, yields on the 10-year Treasury spiked...
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In December 2023, Vladimir Putin declared that the 2024 BRICS Summit, hosted by Russia, would be focused on establishing a “fair world order” based on shared principles. At the core of Putin’s goals for stronger BRICS economic integration is a longstanding and overriding objective to provide a viable alternative to the West’s global hegemony in nearly all facets of political, military, economic, financial, and security affairs.

Challenging Western Dominance

Creating a common currency designed to curtail — and displace – the dominance of the U.S. dollar as the world’s reserve currency