Fed Set for Another Jumbo Cut? 2-Year Yield, Futures Point to 50bps After Election

United States 2-Year News

Fed Set for Another Jumbo Cut? 2-Year Yield, Futures Point to 50bps After Election
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Market Overview Analysis by James Picerno covering: United States 2-Year. Read James Picerno's latest article on Investing.com

will announce another cut in interest rates at the next policy meeting on Nov. 7, two days after the election. The uncertainty is whether the cut will be 25 or 50 basis points.

The 2-year yield is considered a market proxy forecast for the Fed’s target rate. On that basis, the 2-year yield’s 3.56% yield continues to imply that the central bank will reduce interest rates in the near term.The model’s current estimate of the “optimal” Fed funds rate is roughly 3.4% — sharply below the current target rate.

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