As was widely expected, the Federal Reserve lowered its benchmark lending-rate range by 25 basis points on Wednesday afternoon to between 4% and 4.25% – its first rate cut in nine months. Then it gave investors more of what they typically like to hear… More juice is on the way soon.
In their quarterly economic projections, the central bankers said they expect the federal-funds rate to be another 50 basis points lower by the end of the year.
Not only that, but the Fed members think inflation will be running “hot” – and expect to cut rates.
As we’ll explain, it’s still unclear how fast or how far the Fed will cut rates. But even the expectation of further rate cuts has been putting pressure on one corner of the market…
This post originally appeared at DailyWealth.